contents · contents p.1 business philosophy and business creed. p.2 top message. p.3 ～csr...

CONTENTS

P.1 Business Philosophy and Business Creed

P.2 Top Message

P.3～ CSR Management

Policy on CSR Activities ／ Identifying Material Issues ／ 5 material issues

-------Annual Activity Report in fiscal 2015 ～To live together with society ～-------

P.12～＜ Management ＞

Corporate Governance／Internal Control ／Risk Management／Compliance ／

Protecting Intellectual Property ／Information Security Strategies ／

Export and Import Control

P.19～＜ Environmental Activity ＞

Environmental Policy ／ Environmental Sustainability Management ／ Product

Development ／ Product Manufacture ／ Logistics ／Recycling／Protecting Biodiversity

P.38～＜ Social Activity＞

Fair and Impartial Procurement Activities ／ Quality ／ Customer Satisfaction ／

Shareholders and Investors ／Efforts Related to Human Rights／

Human Resource Development ･ Personal system ／ Diversity Management ／

Activities to Support Work-Life Balance ／ Promoting Occupational Safety and

Health ／Social Contribution Activities

P.55 Corporate Profile

Editorial Policy

◇ Policy for Information Disclosure

The Sharp Sustainability Report 2016 discloses information on Sharp's corporate social

responsibility (CSR) efforts, which contribute to creating a sustainable society.

◇ Period Covered ： Fiscal 2015 (April 2015 to March 2016)

◇ Coverage ： Sharp Corporation, along with its domestic and overseas subsidiaries and affiliates.

◇ Referenced Guidelines ：

・ G4 Sustainability Reporting Guidelines (Japanese), Global Reporting Initiative (GRI)

・ Environmental Accounting Guidelines 2012, Ministry of the Environment, Japan

◇ Scheduled Publication Date for Next Report ： August 2017 (published annually since 1999)

SUSTAINABILITY REPORT 2016

Sharp Will Fulfill Its Social Responsibility, Abiding by the Core Principles of Its Business Philosophy and Business Creed

" Make products that others want to imitate." These words, spoken by Sharp founder Tokuji Hayakawa, exemplify

Sharp's management concept of contributing to society through its technologies and manufacturing by being the

first to make products that meet the needs of a new era, and in the process, becoming a corporation that is known

and trusted by society.

In 1973, Sharp articulated the unchanging spirit of its founder in the company's business philosophy and business

creed. The business philosophy states that Sharp aims for mutual prosperity with society and stakeholders—the

foundation of CSR* today—by "contributing to the culture, benefits and welfare of people throughout the world."

The business creed calls for "Sincerity and Creativity," and all employees must hold to it and follow it in order to

realize the business philosophy.

Through its business activities, Sharp has always strived to put its business philosophy into action and to

contribute to the building of a sustainable society. In making a new start towards resuscitation, Sharp will once

again return to the principles behind its business philosophy. By practicing sincerity of conduct and action and by

calling upon its "gene of creativity" to develop new products that generate new value—all the while keeping a

strong customer focus—Sharp is committed to fulfilling its social responsibility and to remaining a company that is

known and trusted throughout society.

Business Philosophy and Business Creed

◂ 1 ▸

※ Corporate Social Responsibility


December,2016President & Chief Executive Officer

I’m Tai Jeng Wu, and I assumed President & Chief Executive Officer in August 2016.

My mission is to position Sharp for growth steadily with achieving a surplus and to contribute to realize a

sustainable society through corporate activities with a high regard for environment and quality. I accept this

responsibility solemnly and walk the talk with doing my best for recovery of trust from our stakeholders.

Our company has founder’s mind for making products such as the word “Make products that others want to

imitate “ and business philosophy and business creed as founding splits which have been inherited for over 100

years from its establishment . At the time of starting new business management system, Sharp Corporation

unveiled its new corporate motto, Be Original. which serves as the company's new commitment to stakeholders

around the world for realizing our basic philosophy.

Be Original. underscores two important messages for Sharp.

Since its establishment , Sharp has always worked to develop its own originality. Be Original. reflects the corporate

spirit that founder Tokuji Hayakawa described in Sharp's Business Creed, "Sincerity and Creativity," In addition, Be

Original. is Sharp's promise to its global customers. Sharp is committed to be a people-oriented company that

continues to bring new value to its customers. As part of this goal, Sharp will introduce unique and innovative

products and services, creating ways to meet customer needs and to enable them to enjoy the convenience that

technology offers.

With a renewed determination, We keep Be Original. in our heart and will accumulate creativity works .In addition,

we will develop original products and service by exerting Sharp’s wide range of technology and business with

holding “One SHARP ” as our watchword to contribute to customer’s life and society.

We will certainly achieve recovery of performance and trust and strive to make SHARP an inspiring global

brand.And We will continue to support the 10 principles of the United Nations Global Compact ※ , which covers

areas such as human rights, labor, the environment, and anti-corruption.

※ Joined the UN Global Compact in June 2009.

Top Message

◂ 2 ▸

We keep Be Original. in our heart and strive to make SHARP

an inspiring global brand.


Sharp‘s CSR has its roots in its Business Philosophy and Business Creed. Sharp divides its CSR activities into

four large categories （ " Offering innovations through business activities", "Harmony with society and collaboration

with partners", "Creation and innovation of corporate culture" and "Basic social responsibility." ）and carries out

well-balanced activities in them while engaging and communicating with stakeholders in order to make Sharp the

kind of company society needs that Integrated management and CSR.

CSR Management ： Policy on CSR Activities

◂ 3 ▸

Sharp Group Charter of Corporate Behavior and the Sharp Code of ConductSharp is pursuing CSR activities by having all Sharp Group companies and their directors and employees truly

understand and comply with rules and regulations and practice corporate ethics. It is with this in mind that Sharp

established the Sharp Group Charter of Corporate Behavior, the principles of corporate behavior of all Sharp

Group companies, and the Sharp Code of Conduct, the standards of conduct for all directors and employees.

The Charter of Corporate Behavior and Code of Conduct are reviewed every year to accommodate changes in the

business environment, including changes in the nature of what society and stakeholders expect of companies. The

revisions also reflect changes to existing laws and the enactment of new ones. The Boards of Directors of Sharp

Group companies around the world passed resolutions to adopt the Charter of Corporate Behavior and Code of

Conduct, and Sharp is working to thoroughly communicate their content through internal training.

ISO 26000 and the United Nations Global CompactRelated information:>The Sharp Group Charter of Corporate Behavior and the Sharp Code of Conduct

Sharp is pursuing CSR activities by making full use of international guidelines such as the United Nations Global

Compact, the OECD* Guidelines for Multinational Enterprises, and ISO 26000.

Sharp will expand and continuously improve its CSR measures in Japan and overseas to provide effective

solutions to various social problems, such as labor issues in developing countries and human rights violations in

conflict-torn regions.

Related information ： >United Nations Global Compact


http://www.sharp-world.com/corporate/info/charter/index.html

https://www.unglobalcompact.org/

CSR Management ： Policy on CSR Activities

◂ 4 ▸SUSTAINABILITY REPORT 2016

United Nations Global Compact 10 Content IndexRelevant Pages published

pages【Human Rights】 Top Message 2

Principle 1: Businesses should support and respect 5 Material Issues③Supply Chain CSR Initiatives 9

of internationally proclaimed humanrights; and

5 Material Issues④Respect for Human Rights andDiversity Management 10

Fair and Impartial Procurement Activities 38～40

Principle 2: make sure that they are not complicit in Promoting CSR across the Supply Chain 39

abuses. Initiatives for Dealing with the Conflict MineralsI

40

Efforts Related to Human Rights 45

Developing Diversity Management 47～50

Activities to Support Work-Life Balance 51

Promoting Occupational Safety and Health 52～53

【Labour】 Top Message 2

Principle3: Businesses should uphold the freedom 5 Material Issues③Supply Chain CSR Initiatives 9

and theeffective recognition of the right tocollective bargaining;

5 Material Issues④Respect for Human Rights andDiversity Management 10

Fair and Impartial Procurement Activities 38～40

Principle4: the elimination of all forms of forced and Promoting CSR across the Supply Chain 39

labour; Initiatives for Dealing with the Conflict Minerals 40

Principle5: the effective abolition of child labour; and Efforts Related to Human Rights 45

Human Resource Development 47～50

Principle6: the elimination of discrimination in Developing Diversity Management 46

and occupation. Activities to Support Work-Life Balance 51

Promoting Occupational Safety and Health 52～53

【Environment】 Top Message 2

Principle7: Businesses should support a 5 Material Issues②Increasing Green Shared 8

to environmental challenges; 19～37

Principle8: undertake initiatives to promote greater

responsibility; and

Principle9: encourage the development andenvironmentally friendly technologies.

【Anti-Corruption】 Top Message 2

Principle10: Businesses should work against Compliance 15

forms, including extortion and bribery.Preventing Corruption in All Forms and DealingProperly ｗｉｔｈ Donations 16

Preventing Insider Trading 44

The Global Compact's 10 Principles

Contribution to Conservation of the GlobalEnvironment(Environmental Policy / EnvironmentalSustainability Management / Product Development/ Product Manufacture /Logistics / Disposal, Recycling /BiodiversityProtection)

CSR Management ：Policy on CSR Activities


ISO 26000 Content IndexCore Subjects Issues Relevant Pages Published

pagesTop Message 2Policy on CSR Activities 3～5ＣＳＲ management ： 5 material issues 7～11Corporate Governance 12Internal Control 13Risk Management 14Top Message 25 Material Issues③Supply Chain CSR Initiatives 95 Material Issues④Respect for Human Rights andDiversity Management 10

Fair and Impartial Procurement Activities 38～40Promoting CSR across the Supply Chain 39Initiatives for Dealing with the Conflict Minerals Issue 40Efforts Related to Human Rights 45Human Resource Development 46Developing Diversity Management 47～50

Activities to Support Work-Life Balance 51Promoting Occupational Safety and Health 52～53Top Message 2Efforts Related to Human Rights 45Human Resource Development 46Developing Diversity Management 47～50Activities to Support Work-Life Balance 51Promoting Occupational Safety and Health 52～53Top Message 25 Material Issues②Increasing Green Shared Value 8

Top Message 25 Material Issues③Supply Chain CSR Initiatives 9Compliance 15Preventing Corruption in All Forms and DealingProperly with Donations 16

Intellectual Property 16Export and Import Control 18Fair and Impartial Procurement Activities 38～40Promoting CSR across the Supply Chain 39Initiatives for Dealing with the Conflict Minerals Issue 40Preventing Insider Trading 445 Material Issues①Ensuring the Safety andReliability of Products and Enhancing CustomerSatisfaction

7

Information Security Strategies 17～18Developing Environmentally Conscious Products 25～26Promoting CSR across the Supply Chain 39Ensuring Quality and Safety 41Enhancement of Customer Satisfaction 42Making Easier-to-Use Products 435 Material Issues⑤Stakeholder Engagement 11Basic Concept of Social Contribution Activities 53Social Welfare Activities and Employee Volunteer 54Communicating with Local Communities 54

Organizationalgovernance 　Organizational governance

Human rights

1. Due diligence2. Human rights risk situations3. Avoidance of complicity4. Resolving grievances5. Discrimination and vulnerable groups6. Civil and political rights7. Economic, social, and cultural rights8. Fundamental principles and rights at work

Contribution to Conservation of the GlobalEnvironment(Environmental Policy / Environmental SustainabilityManagement / Product Development / ProductManufacture /Logistics / Disposal, Recycling/Biodiversity Protection)

19～37

Fair operatingpractices

1. Anti-corruption2. Responsible political involvement3. Fair competition Promoting social responsibility4. Promoting social responsibility in the value chain5. Respect for property rights

Labor practices

1. Employment and employment relationships2. Conditions of work and social protection3. Social dialogue4. Health and safety at work5. Human development and training in the workplace

Consumerissues

1. Fair marketing, factual and unbiased information,and fair contractual practices

2. Protecting consumers' health and safety3. Sustainable consumption4. Consumer service, support, and complaint and

dispute resolution5. Consumer data protection and privacy6. Access to essential services7. Education and awareness

Communityinvolvement and

development

1. Community involvement2. Education and cultureEmployment creation

and skills development3. Employment creation and skills development4. Technology development and access5. Wealth and income creation6. Health7. Social investment

Theenvironment

1. Prevention of pollution2. Sustainable resource use3. Climate change mitigation and adaptation4. Protection of the environment,　biodiversity, and

restotion of national habitats

CSR Management ： Identifying Material Issues

◂ 6 ▸

The major CSR themes (classified as described above) have been reorganized into CSR material issues (materiality)

based on two axes: the level of importance to society (level of expectations from stakeholders) and the level of

importance to the Sharp Group.

Classify Major CSR Themes

Identifying Material Issues in CSR

Incorporating into CSR ManagementThe identified material issues (materiality) are incorporated into the CSR management cycle in the form of KPIs set

by relevant departments.

Sharp will implement and assess measures related to the material issues; it will also, when necessary, review the

way in which material issues are identified, in line with changes in society. Pertinent information will be disclosed via

this Sustainability Report.


Sharp believes that CSR activities should be conducted with

consideration for the effects the Sharp Group's businesses have on

society; it also believes that the actual and potential effects of these

activities should be managed in order to meet the expectations of

stakeholders.

In fiscal 2015 Sharp has distilled its major CSR themes by analyzing

every kind questionnaires, by reviewing issues commonly addressed by

other companies, and by canvassing the opinions and expectations of

Sharp's various stakeholders. This latter group includes those who are

connected with the Sharp Group's businesses: customers, local

communities, business partners, shareholders, investors, and

employees. Sharp has classified its major CSR themes based on the

seven core subjects of the ISO 26000 international standard; this has

been done with an understanding that the themes are the Sharp

Group's social responsibility and with consideration for the specific

characteristics of each business and the region in which each business is deployed.

CSR Management ： 5 material issues

◂ 7 ▸

With increased awareness of consumer issues, the Sharp Group is focused on achieving customer satisfaction (CS).

As a rule, Sharp is always thinking about the customer—developing and providing products and services from the

customers' perspective. Going forward, Sharp will continue to place customers first, in the belief that it is the

company's mission to provide safe, comfortable products and services while minimizing risks, to avoid any negative

impact on society.

Material Issue Goals of the Medium-Term CSR Strategy

Earn customer trust by ensuring product safety and reliability while enhancing customer satisfaction.

Fiscal 2015 Measures Fiscal 2015 AchievementsSelf

evaluation※

Ensuring the safety and

reliability of products and

improving user-friendliness

■No serious accidents caused by a new Sharp product

occurred by pervading criteria of safety Technology.

■Responding better to serious quality problems by

appropriate measures such as conducting recall with

rapidity based on risk management manual.

■promoting the manufacture of products that take into

consideration universal design based on User-Centered

Design policy.

○

Increasing after-sales customer

satisfaction

■Sharp Achieved the goal of after-sales customer

satisfaction by increasing service technology and

responding skills.

■Sharp distributed revised CS manual to service bases

in Japan.

CS mind training conducted at major ASEAN nations.

○

Fiscal 2016Measures Management Indicators Scope

Creating products that customers

can use with peace of mind by

ensuring the safety and reliability

of products.

Number of serious quality problems Japan/overseas

Increasing after-sales customer

satisfactionResults of customer satisfaction urveys Japan/overseas

*Self evaluation:◎ Achieved more than targeted / ○ Achieved as targeted / △ Achieved to some extent


① Ensuring the Safety and Reliability of Products andEnhancing Customer Satisfaction

◂ 8 ▸

As the world experiences population growth and economic development, the consequences of a range of social

issues—such as increasing rates of energy consumption, shortages of raw minerals and water, and destruction of

the natural environment—are becoming increasingly visible. Sharp's business activities have an influence on

environmental issues, on both a local and a global scale. That is why Sharp is engaged in environmental

protection efforts focused on three major themes: the pursuit of a low-carbon society, the recycling of

resources, and harmony with nature. The objective is to have Sharp's positive impact on the environment more

than balance out its negative impact on the environment, in order to fulfill its environmental policy of increasing

Green Shared Value (GSV).


Contribute to resolving the major environmental issues involved in the pursuit of a low-carbon society, the recycling of resources, and harmony with nature

Fiscal 2015 Measures Fiscal 2015 AchievementsSelfevaluation*

Pursuit of a low-carbon society１)Maintain a high level of efficiency

for energy use at plants2) Develop environmentally conscious

products

1)Maintained an appropriate level of efficiency forenergy use at 7 plants out of all 11 plants

2)Certified 52 products as environmentally consciousproducts, and achieved the objective

1)△2)○

Recycling of resources1) Maintain a high level of efficiency

for use of resources at plants2) Recycle used products*1

1)Maintained an appropriate level of efficiency foruse of resources at 7 plants out of all 11 plants

2)Exceeded the stipulated recycling rate for theused products*1

1)△2)○

Harmony with nature

1)Water resources2)Maintain a high level of efficiency

for use of chemicals at plants

1)Maintained an appropriate of efficiency for energyuse at 7 plants out of all 11plants

2)Substantially exceeded the targeted improvementrate of amount of PRTR*2chemicals released andtransferred per production unit

1)△2)◎

Fiscal 2016 Measures Management Indicators Scope

Actions for FactoriesMaintain a high level of efficiency for energy use at plants

Energy-use efficiency Japan

Actions for ProductsDevelop environmentally conscious products

Number of Super Green Products (SGP)

Japan

*1 The four types of products covered by the Home Appliance Recycling Law in Japan (air conditioners, TVs, refrigerators, and washingmachines)

*2 Pollutant Release and Transfer Register. A system that mandates the collection and dissemination of information ,such as the amount ofharmful chemicals discharged and transferred.

② Increasing Green Shared Value




◂ 9 ▸

There is increased awareness by society and stakeholders of social issues affecting the global supply chain, such

as human rights, labor standards, and environmental protection. The Sharp Group recognizes society's

expectations towards Sharp regarding the contribution it should make, as a global company, to address such

issues. By promoting such initiatives, Sharp will respond to circumstantial changes and strengthen its

relationships of trust with clients and suppliers.


evaluation※

Conducting CSR surveys and internal audits at Sharp plants, based on Sharp's revised guidebook

■Conducted CSR surveys of 9 Sharp plants in China and Asiaregion.Promoted internal understanding of international CSR tandards

■Conducted internal audits at Sharp plants in Japan and Chinaand made necessary improvements

○

Conducting CSR/green procurement surveys of suppliers, based on Sharp's revised guidebook

■Conducted CSR/green procurement surveys of suppliers atSharp plants in Japan and overseas and achieved the target ofsupplier response rate

○

Conducting on-site CSR audits to build up the capabilities of plants identified as critical

■Conducted on-site CSR audits 4 plants in Japan and overseas.■Reduced the number of findings pointed out during client

companies’ CSR audits by approximately half○


Expanding and establishing CSR surveys at Sharp plants

Number of audited plants All domestic production bases and all production sites of consolidated subsidiaries in Japan and abroad

Conducting and establishing CSR/green procurement surveys of suppliers,

Percentage of suppliers who completed the CSR/green procurement surveys

Primary suppliers

Responding to CSR Requests from Clients

Number of findings pointed out during client companies’ CSR audits conducted by client companies

Plants identified as critical



③ Supply Chain CSR Initiatives


Obtain the trust and high estimation of external organizations, including clients, by strictly executing CSR

procurement surveys at the plants of Sharp and its suppliers, CSR procurement risk assessment, and audit

functions.


◂ 10 ▸


evaluation※

Enhance measures to increase the rate of female managers to 5%

■Rate of female managers 2.6% as of April 1, 2016 (up from 2.5%as of April 2015)

■New female recruits in fiscal 2016 at a rate of 58% for business(clerical) work and 15% for technical work

○

Maintain the employment rate (2.3％)of the physically or mentally challenged

■The employment rate of the physically or mentally challenged：2.39％（maintained at 2.3%）

○

Prevent power harassment■Satisfaction rating with workplace and supervisors of

Management index In company：increased 0.04PT over the previous year's

○


Promote measures based on action plan of the law to promote the active engagement of women in society

More than 5 % of female ratio of themanager 【by end of fiscal 2019】

Sharp Corporation

Maintain the employment rate of the physically or mentally challenged

Maintain the employment rate (2.3％)of the physically or mentally challenged

Sharp Corporation, Sharp TokusenIndustry Co., and several affiliated companies※1 in Japan

Prevent power harassmentImprovement of employee satisfaction with workplace and supervisors ※2 indicated in surveys

Employees of the Sharp Group in Japan and on temporary transfer to overseas bases

※1 Target scope defined by the public sector※2 Workplace-satisfaction surveys of all employees



④ Respect for Human Rights and Diversity ManagementThe increased globalization of business has greatly expanded the number of opportunities for employees from

different cultures and customs to work together. Accordingly, companies are required to pay attention to a more

diverse and complex range of human rights issues. In the Sharp Group, strategic diversity management is an

important task since it deems as crucial the active promotion and retention of capable personnel, regardless of

such factors as nationality, gender, or age.


Provide more innovative, value-added products and services by enhancing the capabilities and motivation of

employees and invigorate organizations through diversity promotion


◂ 11 ▸

※1 One of the Seven Core Subjects of ISO26000

※2 A volunteer organization composed of Sharp and its labor union which conducts forest-preservation

and clean-up activity.



⑤ Stakeholder Engagement （Local social contribution activities ）

To achieve sustainable development of Sharp Group's business activities and number of regions in which it

conducts business Sharp promotes activities are aware of “Community involvement and development “※1

in specific .Sharp will create value by adopting feasible methods to reflect the results of its stakeholder

engagement activities with local communities in its business activities to contribute to the sustainable

development of society.


By properly holding communications with local communities, Sharp will establish good relationships as a people-

friendly company. Furthermore, Sharp will enhance the creation of value by reflecting feedback from such

activities in its business activities.



evaluation※

Holding dialogues with local communities

■Systems established and promoted for holding dialogue withlocal communities ○

Participating in local social contribution activities as the Sharp Group

■Number of social contribution activities (SGC※2 activitiesetc)maintained and promoted new activities ○


Participating continually in local social contribution activities as the Sharp Group

■Number of social contribution activitiesmaintained and trial attempts for newactivities introduced

Sharp Group in Japan


Management ： Corporate Governance

◂ 12 ▸

(as of June 23, 2016)

Fiscal 2015 Objectives Fiscal 2015 AchievementsSelf

evaluation※

■Introduce in-house company system tostrengthen corporate control and establishingautonomy of each company, thereby achievingspeedy and disciplined management

■Introduced in-house company system in October2015 and shifted resources (including humanresources) and authority to each company withenhancing collaboration with headquarters aboutimportant decision-making.

○

Priority Objectives for Fiscal 2016■Reorganize each company and business division into segmentalized

Business Unit（BU）to conduct detailed business operation that matchmarket and business environment of each BU.

Medium-Term Objectives (up to Fiscal 2017)

■Shift resources further; strengthen management liability system for BU byadvancing business management

■Transform organization into one that is more focused in terms ofbusiness characteristics, so that it can respond better to changes

Sharp Will Fulfill Its Social Responsibility, Abiding by the Core Principles of Its Business Philosophy and Business Creed


Sharp‘s basic policy on corporate governance is to maximize corporate value through timely and appropriate

management while ensuring transparency, objectivity, and soundness supported by the concept, "Our future

prosperity is directly linked to the prosperity of our customers, dealers and shareholders..." as stated in the

company's Business Philosophy.

Corporate Governance System

As one way to ensure that its corporate governance is functioning effectively, Sharp is developing and maintaining

its internal control system to ensure that the entire Sharp Group engages in fair and appropriate business practices

based on the provisions of Japan's Companies Act and of the Internal Control Reporting System falling under the

Financial Instruments and Exchange Act.

In response to the enactment of the Companies Act in 2006, the Board of Directors passed a resolution to adopt a

basic policy related to the development and maintenance of systems necessary to ensure the propriety of business

practices (Basic Policy for Internal Control). The company is working to properly maintain and operate those

systems. In accordance with this policy, Sharp also established the Internal Control Committee to serve as an

advisory panel to complement the supervisory functions of the Board of Directors. The Internal Control Committee

discusses various policy measures related to the internal control system, while also affirming their operational

status.

In line with the amendment of the Companies Act in 2015, Sharp revised its Basic Policy for Internal Control. In

accordance with the revisions Sharp selected policies to be strengthened and mount intensive efforts.

For fiscal 2016, Sharp will review how carry about various policies so that can affirm their operational and

maintenance status exhaustively affirming their operational status.

At the same time, in response to the Financial Instruments and Exchange Act, the Sharp Group has been evaluating

the effectiveness of its internal control system with respect to financial reporting. It has also taken steps to reduce

various business risks through the sound operation of its internal control system.

In fiscal 2015, Sharp implemented various measures to boost the control functions of each internal control area as

well as the efficiency with which internal control system effectiveness is evaluated. Sharp also mounted intensive

efforts to resolve critically important items and submitted an Internal Control System Report in June 2016.

For fiscal 2016, Sharp will specify and focus important items for each organization to boost the control functions of

each internal control area.

◂ 13 ▸

Priority Objectives for Fiscal 2016

■Put into practice and maintenance exhaustively various policies related tointernal control system, based on Basic Policy for Internal Control;complete those policies as initially scheduled

■Mount intensive efforts to resolve important items (problem items) ineach internal control area, and submit Internal Control System Report inJune 2017


Management ： Internal Control

Internal Control


evaluation※

■Put into practice various policies related to internalcontrol system, based on Basic Policy for InternalControl (revised in line with Japan's amendedCompanies Act); complete those policies asinitially scheduled

■Mount intensive efforts to resolve important items(problem items) in each internal control area, andsubmit Internal Control System Report in June2016

■Completed various policies related to internalcontrol system as initially scheduled

■Reviewed policies, mounted intensive efforts toresolve important items (problem items), andsubmitted Internal Control System Report(information disclosure) (June 2016)

○


Promoting BCPs ※

Management Based on the Rules of Business Risk Management

Priority Objectives for Fiscal 2016■Review concept of designating risks and PDCA cycle of the risk

management

◂ 14 ▸

※ Business Continuity Plan


Management ： Risk Management

Risk Management*Self evaluation:◎ Achieved more than targeted / ○ Achieved as targeted / △ Achieved to some extent


evaluation※

■Ongoing review of priority risks and implementationof risk management based on PDCA cycle○Strengthen information management○Strengthen risk management for overseas

subsidiaries

■Reviewed priority risks and implemented riskmanagement based on PDCA cycle .

○Strengthened information management○Strengthened risk management for overseas

subsidiaries

○

Sharp believes risk management is essential in order to fulfill its corporate social responsibility, which entails meeting

the expectations of stakeholders through the sustainable development of business. Sharp has developed the Rules of

Business Risk Management as a basic policy of risk management and in the Rules, risk items that could have a major

impact on management are identified as "specific risks."For each specific risk, Sharp is continuously moving forward

with initiatives to minimize risks and to prevent risks from actually occurring while collaborating a functional business

division to be responsible for risk management across the entire company and company or business division to be

responsible for operating its business area.

In addition, Sharp has established the Rules of Emergency Response, detailing responses if a major risk incident does

come to pass. Taking prompt and appropriate action when an emergency situation occurs works to minimize loss and

to prevent the damage from spreading not only across the company, but also to society at large. Sharp periodically reviews

and revises these Rules to reflect changes in the business environment by, for example, adding new specific risks.

Management Methods for Important RisksFrom among the risks that Sharp has designated as specific, those that have a greater potential impact and a higher

probability of occurrence are selected as “priority risks,” and they become the subject of intense focus in the risk

management activities of functional division ,company and each business unit.

For fiscal 2016, Sharp will review concept of designating risks and PDCA cycle of the risk management to foster

usefulness of risk management.

Sharp's major business sites and group companies have formulated BCPs (business continuity plans) that assume

the occurrence of emergency situations, such as a large-scale disaster or an outbreak of an infectious disease.

This effort is intended to expedite the continuation or early recovery of business when such emergencies occur.

By regularly reviewing BCPs and holding training sessions, Sharp works to maintain and improve the business

continuity capacity of the organization.

In fiscal 2015 Sharp construct a framework that can review BCPs regularly.

Sharp defines compliance as “observing social codes of conduct and company regulations, including laws and corporate

ethics." Accordingly, Sharp is pursuing the ongoing strengthening of systems for the implementation of management

practices that give priority to compliance.To strengthen compliance and legal systems in Japan, the Legal Unit at the

Head Office, with legal affairs managers and staff members from company, business units and affiliated companies of

Sharp Corporation in Japan, discuss problems and case studies related to compliance and legal affairs by holding regular

meetings as part of an ongoing effort to establish a shared awareness of compliance issues.

To strengthen its compliance and legal systems overseas, the legal affairs administrators work in cooperation with

every base in the region and hold regular meeting with Sharp's Legal Unit at the Head Office in order to share

information and strengthen compliance and legal functions in their given region.

In support of these efforts to promote compliance in all regions of Japan and abroad, the CSR/Compliance Committee,

chaired by the Sharp president, regularly carries out the following activities: 1) it discusses and decides how to raise

awareness of compliance measures and how to thoroughly enforce them; and 2) it prioritizes the order of

implementation for each measure and adjusts the schedule accordingly.

In fiscal 2016, Sharp will continue to work to improve and strengthen its system for dealing with compliance and legal

affairs.

Consultation Hotline for Compliance Issues


Management ： Compliance

Compliance*Self evaluation:◎ Achieved more than targeted / ○ Achieved as targeted / △ Achieved to some extent


evaluation※

■Conduct compliance training■Conducted training on antitrust laws (as well as otherlaws and regulations) and on compliance for newly appointed managers

○

Priority Objectives for Fiscal 2016 ■Conduct compliance training

Strengthening the System to Promote Compliance

Sharp Corporation and its affiliated companies in Japan have set up the hotline to provide counseling services for

problems in the workplace, such as compliance issues. The company has also set up the antitrust law hotline, which

serves as a contact point specifically for issues related to antitrust laws. These hotlines are accessible inside the

company and externally (via an outside law firm providing llegal counsel) to enable employees and temporary staff—as well

as employees of business partners*—to ask questions or request a consultation in line with the spirit of Japan's

Whistleblower Protection Act.

Sharp also has a consultation service dedicated to addressing workplace harassment (which includes sexual harassment,

pregnancy discrimination, and abuse of authority). These services enable Sharp to work with employees to quickly catch

real or potential violations of the law and take early action to resolve problems.In fiscal 2015, the compliance hotline

received about 50 reports and requests for consultation; however, there were no material compliance violations.

The Sharp Code of Conduct clearly stipulates that the privacy of individuals who report compliance violations or seek

consultation will be strictly protected and that those persons will suffer no unfavorable treatment or penalties. Similar

reporting and consultation services have been set up at Sharp's major overseas bases, and early actions are being taken

to resolve problems.

*Only the compliance hotline is available for use by employees of business partners.

◂ 16 ▸

Management ：ComplianceProtecting Intellectual Property

Preventing Corruption in All Forms and Dealing Properly with DonationsThe Sharp Group Charter of Corporate Behavior and the Sharp Code of Conduct contain provisions that strictly

prohibit any form of corrupt behavior, such as extortion or direct or indirect bribes of money or goods.

The Group Charter and Code of Conduct also stipulate that donations must be handled in a proper manner.

In March 2015, Sharp instituted rules of conduct governing both executives and employees, with a view to

preventing corrupt practices such as bribery. By setting up a clear system of checks, the company is working to

prevent acts of bribery. In addition, the company has produced guidebooks and training materials and has also

conducted training sessions.

In Japan, Sharp prevents illegal payoffs and improper expenditures through a system of compulsory reviews.

In place since December 2008, this system serves to assess the propriety of monetary disbursements such as

donations and contributions made by Sharp Corporation and its affiliated companies.

In March 2014, Sharp further tightened the assessment criteria to ensure fairer reviews. In fiscal 2015, there were

67 cases of such reviews.

Intellectual PropertyIntellectual Property Strategy and Management System

Sharp regards its intellectual property strategy as one of its corporate strategies, and it is promoting it together

with its business strategy and R&D strategy. By defining core technology areas with respect to each business,

Sharp is strategically filing patent applications that are tightly coupled with its business development.

This ensures the company's superiority in each business area and strengthens its business base.

As of the end of March 2016, Sharp held about 17,700 Japanese patents and about 22,200 foreign patents.

In addition, Sharp is filing applications and registering rights for designs and trademarks globally under its brand

strategy.

Protecting Intellectual PropertySharp is firmly committed to protecting its own intellectual property rights, which form the basis of its business

activities, while also respecting the intellectual property rights of others. While Sharp takes an amicable

approach to resolving issues of infringement, it is the company's policy to seek the judgment of a third party,such

as the courts, when its intellectual property rights are not respected.


◂ 17 ▸

Management ： Information Security Strategies Information Security Strategies



evaluation※

■Have departments that handle personalinformation obtain ISO 27001, an internationalstandard for information security managementsystems

■Centralize and unify management of publiclyaccessible websites (ongoing)

■Promote security measures to prevent informationleakage from MFPs

■Obtained ISO27001 as scheduled.■Obtained usage authority of new top domains for

Centralize and unify management■Self-checks are conducted to prevent

information leakage from MFPs

○


■Correspond to screening to maintain ISO27001■Promote security measures to prevent information leakage from MFPs at

overseas Bases■Reconstruct Internal Regulations according to revision of law protecting

personal


■Realize unified and effective information management operations thatlead to the effective utilization of information

■Integrate all publicly accessible websites to a unified environment andstrengthen the management of them

■Establish mind of information security can be put in practice in dailyduties by instilling ISMS Management Cycle throughout the company.

Strengthening of Information Management SystemsSharp positioned measures about information management as one of management strategy and created a

department promoting information management from a company-wide perspective was under the Management

Planning Chief Officer. Based on its Global Basic Policy on Information Security, The department is appropriately

managing and handling confidential and personal information while also promoting information security measures.

In addition, Sharp is carrying out measures to unify and streamline information management operations.

Information Security MeasuresIn Japan, e-learning sessions on information security are provided annually to all employees. In fiscal 2015 as a

measure against targeted cyber-attacks Sharp conducted drills for all employees who use e-mail for work to

study importance of being careful in duty works with teaching cases occurred external. In addition, annual

information security self-checks are conducted .

Sharp continually strengthen early detection of unauthorized behavior by protecting unauthorized intrusion

and log analysis for vulnerability test for publicly accessible websites enhanced ever before and information

leakage caused by targeted cyber-attacks and incorrect access in order to contribute to conduct business in

safety.


◂ 18 ▸

※ Authorized Economic Operator

Management ：Information Security Strategies Export and Import Control Management of Personal Information

More strict management of personal information is required due to leaks of personal information at third parties such as

public institution. Sharp enhanced prevention of such leaks to departments dealing with a large amount of personal

information, including without limitation, by applying more strict management rules. In addition Sharp conducts to all

employees in Japan annual e-learning sessions that cover the protection of personal information and also performs

self-checks on the management conditions and audits at departments holding personal information.

Export and Import ControlSecurity Export ControlNorth Korean missiles and nuclear threat, terrorist attacks in various regions by groups like the so-called Islamic State,

and other such issues have put global security in an unpredictable state—necessitating the implementation of even

stricter export security control. In Japan, Sharp has been among the first in the industry to remain steadily engaged

in security export control ever since the days of the Cold War, when COCOM regulations were in effect.

In the past, it was obvious which cutting-edge technologies should be put under control; but today, with the advance

of technology, there is an increasing number of cases of consumer-use technologies and products being diverted for

use in a military or weaponry context. Each Sharp Group company, including domestic and overseas subsidiaries, has

a system in place for secure export control based on the Sharp Code of Conduct and Sharp Compliance Program on

Security Export Control. Through this system, Sharp strictly monitors goods and technologies that fall under local

export control regulations, while rigorously screening the destination and the end use of Sharp products and

technologies to ensure that they will not be used in a military or weaponry context.

In addition to observing the Foreign Exchange Act, companies must comply with the Export Administration Regulations

of the United States on re-exporting US-origin products. These regulations are also applicable in countries outside of

the US, and Sharp is working to comply with these regulations. The key to Sharp's stringent security export control is

education; Sharp has various training programs that foster employee awareness of security export control.

It provides e-learning sessions to all employees.

Trade ControlIn case of import and export, it's desired to do the proper management complying with the Customs Act / Customs

Tariff Act. It's the situation that proper management in logistics such as prevention of illegal import and export of a

weapon by an international terrorism group and the border control of the medicine pollution which becomes social

problem is strong and desired about safety of freight of import and export.

Sharp possess qualification of AEO ※ exporter status and conform to a decree and execute necessary management

in each process of the export, such as physical distribution, security management and procedure management into

effect strictly for appropriate export. In addition Sharp strengthens the internal administrative structure on various

import and export such as courier/mail services and hand carry by travelers on their business trip, besides the

authorized exports, also continues reviewing and revising its present internal rules and applications, making database

of a record of import and export and conducting internal training. Through these measures, Sharp establishes its

structure to comply with the relevant laws and regulations on import and export. Sharp will continue executing proper

trade management into effect with future


Increasing Green Shared ValueSharp places the fulfillment of society's needs regarding environmental matters in close alignment with its

strategy for business growth, with a view to achieving success in both areas. Sharp defines the value thus

created as "Green Shared Value" and it has established an environmental policy of increasing this value.

In an effort to foster a low-carbon society―a key environmental goal for all―Sharp is controlling its

greenhouse gas (GHG) emissions in conformity with the GHG Protocol Corporate Value Chain (Scope 3)

Standard. This covers emissions not only in product manufacture, where reduction of GHG emissions is required

by law, but also throughout the entire supply chain, from materials procurement to product use.

With a view to increasing Green Shared Value, Sharp is furthering its environmental initiatives by striving always

to make the positive impact of its avoidance of GHG emissions―achieved through customer use of energy-

creating and energy-saving Sharp products―more than balance out the negative impact of GHG emissions from

its business activities.

More Concretely, Sharp is promoting green procurement, saving energy, reduction of waste,

paperless at the office, reuse and recycling, etc continuously and proactively.

In fiscal 2015, Sharp's positive impact (i.e., avoided GHG emissions) was equivalent to 28million tons CO2 ,

meanwhile, the company's negative impact (i.e., GHG emissions) was 25 million tons CO2. As a result, the GSV

index (the ratio of positive impact to negative impact) became 1.1 (i.e., 28million tons CO2 divided by 25million

tons CO2), and Sharp maintained the situation where its positive impact of its avoidance of GHG emissions are

more than balancing out the negative impact of GHG emissions from its business activities.

For fiscal 2016 and on, Sharp will aim to increase Green Shared Value by developing and proliferating further

energy-creating and energy-saving products, and promoting efficient energy use through its business activities.

Achievements for Fiscal 2015

Environmental Activity : Environmental Policy

◂ 19 ▸

Concept of increase of avoided GHG emissions and reducing GHG emissionsTarget State

Target State

Course

Course

Efforts toIncrease avoided emissions

Efforts to Reduceemissions

Amount of emissions

Amount of avoided emissions


Putting Environmental Sustainability Management into Practice

Environmental Activity : Environmental Sustainability Management

In accordance with internal environmental conservation guidelines established in line with Sharp's Basic

Environmental Philosophy, the Sharp Group Charter of Corporate Behavior, and the Sharp Code of Conduct,

Sharp is pursuing environmental consciousness across all of its business activities.

Promoting Environmental Sustainability ManagementSharp Corporation has set up the Quality and

Environmental Promotion Group as an organization

to decide on and promote environmental policies

and other important items for the entire Sharp

Group. Critical policies, strategies, and measures

relating to environmental sustainability

management are referred to the Group-Wide

Conference. With the approval of corporate

executives, these initiatives are thoroughly

implemented across the entire Sharp Group

through the basic environmental policy meeting,

at which the managers responsible for

environmental affairs at each manufacturing-related department and base worldwide are thoroughly briefed on

priority measures and strategies. Sharp also holds the company-wide environmental Product and Factory

conferences for responsible persons in Japan as well as regional environmental conferences overseas to review

and discuss environmental solutions and the progress made on each of the environmental measures being taken

at each department and base. In this way, Sharp has a system in place to put environmental sustainability

management into practice across its entire organization.

Promoting an Environmental Management System

Sharp has been operating an environmental management system (based on ISO 14001) at its plants and offices

since 1995 in order to strengthen environmental sustainability management and improve the environmental

awareness of employees.

With the view of ISO14001’s 2015 revision, the company is exchanging the information among plants and

offices. Toward establishing more effective management system which matches to the particular needs of each

plant and office, Sharp will shift the present system to the 2015 version in an efficient way.

◂ 20 ▸

Promoting Environmental Education

Sharp conducts basic environmental training for its employees, and it boosts employee awareness and

knowledge of environmental matters on an ongoing basis. Sharp also has education programs including

environmental compliance training to deepen the understanding of product-related laws and regulations, and

design-for-recycling training to develop products that are recycle-friendly.

For fiscal 2016 and beyond, Sharp will renew its environmental education scheme and promote the programs

better reflect the needs of persons in charge of environmental affairs.


Sharp uses numerical values to gain an overview of the burden its business activities place on the environment and uses these values to promote environmental sustainability management.By making use of these current values at all stages of business activities to create proposals for policy measures and to analyze and evaluate the results, Sharp is aiming to effectively reduce the impact it has on the environment.

*1 TJ (terajoule) = 1012 Joules *2 Amount of solar power generated; amount of green power certificates purchased.

*3 Total weight of product shipments and waste, etc.

*4 Amount recycled through closed-loop plastic material recycling technology. *5 In Japan.

*6 Annual energy used and amount of CO2 emitted by products in the 13 major categories sold in fiscal 2015 (estimate).

*7 Total weight of products in the 13 major categories sold in fiscal 2015 and packaging materials used (estimate).

Material Balance

◂ 21 ▸

・ City gas 21 million m3

・ LPG 5,918 ｔons

・ Heavy oil, kerosene,gas oil, gasoline 1,325 kl

・ Hot water, cold water, steam 1,367 TJ

8.9

4.9

3.4

0.6

15.1

1,180

9,331

640

（Fuel）*5284 TJ

37,23037,230 TJ(3,734 million kWh)

47,000

3,000

21

1,365

1,1071,021

85

5

34

37

9

0.4

6.14.1

2.0

390

105.82.55.1

22.71.4

73

0.7

567

19

2,415

6,950


17,667 TJ*1

1,543

（Alternative energy*2）1,530

13

*6

*3

(Recycled plastic*4) *7

*5

*6

*5

*5


Greenhouse Gas Emissions Based on the GHG Protocol InitiativeSharp calculates greenhouse gas emissions based on the GHG Protocol*1 and then works to limit those emissions

resulting from customer use of Sharp products and from Sharp's business activities, including those in the supply

chain. The results for fiscal 2015 are as follows.*1 The GHG Protocol is an international standard for calculating greenhouse gas (GHG) emissions. It was jointly established by the World Business

Council for Sustainable Development (WBCSD), a coalition of the world‘s leading companies, and the World Resources Institute (WRI), a United

States-based think tank.

◂ 22 ▸

■Greenhouse Gas Emissions by Scope 1/2/3 Categories Based on the GHG Protocol Initiative (Fiscal 2015)

ScopeEmissions

Notes(thousand tons CO2)

Scope 1 (direct GHG emissions from business activities)

153 Emissions from combustion of fuel, etc.

Scope 2 (indirect GHG emissions from energy usage in business activities)

954 Emissions from the use of electricity

Scope 3 (indirect GHG emissions from areas outside the scope of business activities)

27,632Calculated for 10 categories such as Procurement, Shipping & Distribution, Product Usage, and Employee Commuting & Business Trips

■Greenhouse Gas Emissions by Scope 3 Category(Fiscal 2015)

Classification CategoryEmissions

Notes(thousand tons CO2)

Upstream

Purchased goods and services

3,000CO2 emissions from the manufacture of materials procured for main products*2 that the Sharp Group sold in the relevant year

Fuel- and energy-related activities not included in scope 1 or 2

100CO2 emissions from transmission losses of electricity purchased by the Sharp Group

Upstream transportation and distribution

30CO2 emissions from transportation and distribution of materials procured by the Sharp Group

Sharp

Business travel 10CO2 emissions from business travel by all employees of Sharp Corporation

Employee commuting 10CO2 emissions from commuting by all employees of Sharp Corporation

Leased assets - Included in scope 1 and 2 CO2 emissions

Downstream

Processing of sold products

300CO2 emissions from processing at destination of Sharp Group products

Downstream transportation and distribution

230CO2 emissions from transportation and distribution of products manufactured by the Sharp Group

Use of sold products 23,950CO2 emissions in the relevant year from the use of main products*9 that the Sharp Group sold in the relevant year

End-of-life treatment of sold products

2CO2 emissions from recycling 4 types of appliances*3that Sharp Corporation sold in Japan

Total 27,632

*2 13 product categories: LCD TVs, air conditioners, refrigerators, washing machines, air purifiers, microwave ovens, LED lights, Blu-ray

Disc recorders, facsimiles, mobile phones, LCD monitors, copiers/MFPs, solar cells

*3 TVs(CRT TVs, flat-panel TVs), air conditioners, refrigerators/freezers, washing machines/dryers



Environmental AccountingSharp introduced environmental accounting in fiscal 1999 to provide a quantitative assessment of the costs and

benefits of its environmental conservation activities and is applying the results to environmental sustainability

management.

Environmental Conservation Costs

In fiscal 2015, Sharp's environmental conservation investment was approximately 4.4 billion yen, and environmental

conservation expenditures were approximately 25.7 billion yen. Costs associated with “Planning and Design

(research and development)” made up a large percentage of these figures.

Economic BenefitsOwing to the restriction of new investment and aging of the existing facilities, both the energy-saving effects of

“Reduce GHG emissions (global environmental conservation and the effects of “Minimize and recycle waste

(recycle resources)” decreased due to the lessened use of recycled water and the shrunk recycling of waste into

valuable resources.” As a result, the actual benefit declined to approximately 2 billion yen.

Explanation of Terminology

＜Environmental Conservation Costs＞

Overhead costs, personnel expenses, and investment associated with environmental conservation activities, in

addition to attendant depreciation.

＜ Economic Benefits ＞

Contributions to society and to the company that result from environmental conservation activities, expressed in

monetary units (economic effects that can be assessed directly in monetary terms, such as cost savings from

energy-saving efforts and use of recycled water, as well as profits from the sale of valuable resources).

Sites CoveredSharp Corporation factories (Kameyama, Mie, Tenri, Fukuyama, Mihara, Katsuragi, Sakai, Tochigi, Nara, Yao, and

Hiroshima), offices(Head Office,Tanabe *),Sharp Manufacturing Systems Corporation, Sharp Yonago Corporation,

and Sharp Mie Corporation

Period Covered

April 1, 2015 to March 31, 2016

Referenced GuidelinesEnvironmental Accounting Guidelines 2005 published by the Ministry of the Environment, Japan

* As of March 31, 2016

◂ 23 ▸



* 1 HFCs, PFCs, sulfur hexafluoride (SF6), nitrogen trifluoride (NF3), HCFCs

* 2 Total effects of measures pertaining to the use of equipment that is depreciating.

* 3 Amount reduced by solar power systems sold in fiscal 2015, assuming that they will be in operation for the next 20 years.

* 4 Amount reduced by products in the four major categories (LCD TVs, air conditioners, refrigerators, copiers/MFPs) sold

in fiscal 2015, assuming that they will be used for the next 10 years.

1

2

3

4

◂ 24 ▸

21

Environmental Accounting

27 2,085

4,317 13,452

85 2,159

0 4,791

20 3,193

520

749 *2

1,266

4,449 25,732 2,015

43

19,616

37

52

*1

*3

*4

11,493

16,782

28

53

14,871

21

3

47

23.2

99.8



Developing Environmentally Conscious Products and Devices

Sharp calls its environmentally conscious products

Green Products (GP). The GP Guidelines, which

define development and design criteria in line with

seven concepts, have been in use at all product

design departments since fiscal 1998. In developing

products, Sharp sets specific objectives according

to the GP Standard Sheet, which is formulated

based on the GP Guidelines. In the trial

manufacture and mass production stages, it

determines how well the actual product has met

these objectives, with those achieving the

Standards being awarded GP status. The content

of the GP Standard Sheet—the benchmark for

development objectives—is revised each year in order to constantly improve the environmental performance of

Sharp products.

Environmental Activity : Product Development

Developing Green Products

Developing Super Green ProductsSince fiscal 2004, Sharp has been certifying products that offer a particularly high level of environmental

performance as Super Green Products (SGP). In fiscal 2015, 52 product models such as LCD TVs and refrigerators

were certified as SGP. Sales of those products reached 170.2 billion yen, with SGP sales accounting for 31.3% of all

GP sales in Japan.

◂ 25 ▸


evaluation*

■Super Green Products (Japan): Certify 50 products

■Certified 52 products ○

■Green Device Challenge Points: Achieve an average of 50 points

■Achieved an average of 72 points ◎


■Super Green Products (Japan): Certify 50 products (criteria andevaluation content to be revised each year)

■Green Device Challenge Points: Achieve an average of 50 points(criteria and evaluation content to be revised each year)

Medium-Term Objectives(up to Fiscal 2017)

■Super Green Products (Japan): Certify 50 products (criteria and evaluation content to be revised each year)

■Green Device Challenge Points: Achieve an average of 55points(criteria and evaluation content to be revised each year)



Sharp calls its environmentally conscious devices

Green Devices (GD). To define guidelines for

development and design based on seven concepts,

Sharp established the GD Guidelines, which it

began applying at all device design departments

in fiscal 2004.

In developing devices, Sharp sets specific

objectives according to the GD Standard Sheet,

which is formulated based on the GD Guidelines;

and in the trial manufacture and mass production

stages, it determines how well the actual device

has met these objectives, with those achieving

the standards being named GD.

In fiscal 2013, Sharp revamped the GD

assessment system by adding new criteria

concerning forward-looking initiatives that take customer demands into consideration. The degree to which

these criteria are satisfied is represented in points called GD Challenge Points. Sharp is continuously creating

devices that have an even higher level of environmental performance by revising criteria every year. In fiscal

2015, Sharp focused on using environmental conscious parts and materials, and achieved 73 points, which are

far beyond the target of 50 points.


Sharp performs a life cycle *1

assessment (LCA) on its products to

identify their impact on the environment

throughout their service life. Converting

this impact into CO2 emissions provides

a quantitative measure that Sharp uses

in its efforts to reduce environmental

impacts. Air conditioners and other

consumer electronics have a large

impact during use.

Thus, by focusing on improving their energy savings, Sharp is effectively reducing overall environmental impact.

In fiscal 2016, Sharp revised the criteria for this certification.

Products are certified if they offer class-leading energy-saving

or energy-creating performance or if they offer significant high

environmental performance through the use of unique

Sharp technology. This way, Sharp is aggressively pursuing

the development of products that have higher level of

saving-energy performance and resource conservation

features, as well as developing high-efficiency solar cells.

Developing Green Devices

Identifying and Reducing Environmental Impacts throughout the Life of Products

SGP：Washing Machine which won the Director-General'sPrize of the Agency for Natural Resources and Energy in the Product and Business Model category, in Japan's 2015

Energy Conservation Grand Prize program.

LCA Data for Air Conditioners

Air Conditioner(2014 model)IndoorUnit AY-E36SXOutdoorUnit AU-E36SXY

Approx. down 7%

USE

USEUSE

Disposal , Recycling Use*2 MaterialsManufactureDistribution

*1 The life of a product from materials and parts procurement to manufacture, distribution, use, disposal, and recycling.*2 CO2 emissions during use are calculated using a CO2 emission coefficient of 0.554 kilograms CO2/kWh (announced by the Federation of Electric

Power Companies of Japan for fiscal 2014).

Air Conditioner(2015 model)IndoorUnit AY-F36X2OutdoorUnit AU-F36X2Y

Approx. down 6%overall



Appliances contain a variety of chemicals. To properly manage these chemicals, countries around

the world have enacted laws and regulations that bring these chemicals under control. In the EU,

for example, the RoHS directive*1 restricts the use of specified chemicals in products, while

REACH regulations*2 require companies to convey and disclose information on chemicals used

throughout the supply chain. Countries such as Japan and China also have laws requiring

companies to disclose information on certain chemicals contained in products.

In fiscal 1994, Sharp established its own standards for managing chemicals contained in parts and

materials used for its products. Based on these standards―which were stricter than voluntary

industry standards or standards stipulated by laws and regulations—Sharp introduced its original

Chemical-Product Assessment (C-PA) system to evaluate the safety of chemicals. In this way,

Sharp has been working to ensure the safety of products during use and to reduce the

environmental impact at the time of disposal.

Sharp also has in place its own chemical substance management system, through which it

cooperates with suppliers to collect data on chemicals contained in parts and materials. The

company is working to upgrade and expand this database of chemicals contained in its products.*1 An EU directive on the "Restriction on the use of certain Hazardous Substances." (Promulgated in 2003; revised in 2011.)

RoHS restricts the use of lead, mercury, cadmium, hexavalent chromium, polybrominated biphenyl (PBB), and polybrominated diphenyl ether

(PBDE) in electrical and electronic equipment entering the EU market after July 1, 2006. The use of Bis(2-ethylhexyl) phthalate (DEHP), Butyl

benzyl phthalate (BBP), Dibutyl phthalate (DBP) and Diisobutyl phthalate (DIBP) will be restricted after July 22, 2019.

*2 REACH (Registration, Evaluation, Authorisation, and Restriction of Chemicals) is a set of EU regulations covering chemicals produced in and

imported into the EU. (Took effect in 2007.)

In fiscal 2000, Sharp established the Green Procurement Guidelines to procure goods with low

environmental impact with the cooperation of suppliers, and it has been working to increase

environmental consciousness at the level of parts and materials. In fiscal 2005, contracts with

Sharp's suppliers were amended to require compliance with the Green Procurement Guidelines. In

fiscal 2011, Sharp revised the guidelines to promote the biodiversity protection efforts of its

suppliers.

In April 2015, Sharp revised its Supply-Chain CSR Deployment Guidebook to be in compliance

with the EICC(Electronic Industry Citizenship Coalition) Code of Conduct. In doing so, Sharp

integrated its green procurement survey and CSR procurement survey, which were conducted

separately, into a single CSR/green procurement survey. Sharp and its suppliers will continue

conducting business with a focus on environmental protection in order to reduce environmental

impact throughout the entire supply chain.

Managing Chemical Substances in Products

Green Procurement—Reducing Environmental Impact in the Supply Chain

Green Procurement / Managing Chemical Substances in Products


Environmental Activity : Product Manufacture

Sharp defined the ratio of environmental load in the four key areas of energy, waste, water resources and

chemical substances and Physical index(numbers of LCD panel production, output of the product etc.) as

environmental efficiency rate.

Sharp monitors the levels of environmental efficiency rate of each factory. And if the values deviate from normal

range, the Quality and Environmental Promotion Group and each factory work together to identify the cause and

take countermeasures.

In fiscal 2016, Sharp plans to adjust environmental efficiency ration, based on the operation situations of each

factory. And Sharp continues to promote these activities in factories in Japan, and starts trial implement in

factories in China and ASEAN countries.

Sharp defined the factory with high environmental consciousness as “Green Factory(GF)”. In fiscal 1999, Sharp

started assessment and certification for its factories, based on the GF guideline. In fiscal 2003, Sharp

introduced a system for “Super Green Factory(SGF)” to raise the level of environmental performance at its

factories. In SGF, the scope of assessment criteria were expanded. It includes both "hard" aspects, such as

introducing high-efficiency equipment and exhaust abatement systems, and "soft" aspects, such as the

appropriate operation, and management of those equipment and systems. By fiscal 2014, almost all Sharp

factories had achieved targeted levels of environmental performance and Super Green Factory (SGF) status.

From fiscal 2015, Sharp launched a new scheme called Sharp Green Factory (ShGF), which aims to maintain

existing high levels of environmental performance and raise operational safety levels, and completed the

introduction of ShGF to Sharp factories in Japan.

Maintaining Environmental Performance Levels of Factories

Raising the Level of Environmental Performance in Factories

Promoting the Sharp Green Factory (ShGF) activities

Maintaining Operational Safety Levels of FactoriesSharp has formulated the Environmental Safety Operations Guidelines, which are being utilized in factories in

Japan and China. The guideline explains both environmental maintenance procedures (mainly in response to laws

and regulations) and the appropriate management of factory infrastructure and environment-related equipment.

The aim of the guidelines is to enable Sharp to respond correctly to the strengthening of factory-related laws and

regulations and to the deterioration of facilities and equipment over time.

Based on the guideline, each factory makes self-audit to maintain the levels of operational safety, and hold the

conference to share the know-how on operational safety. In fiscal 2016, Sharp plan to introduce “Environmental

Safety Operation Guidelines” in factories in ASEAN countries.

◂ 28 ▸


evaluation*

■Implement Sharp Green Factory (ShGF) scheme in factories in Japan

■Completion of Implement Sharp Green Factory (ShGF) scheme in factories in Japan

○

Priority Objectives for Fiscal 2016■Ongoing implement of ShGF scheme in factories in Japan,

and trial implement ShGF scheme in factories in China and ASEAN countries


■Implement ShGF scheme in factories in China and ASEAN countries



Curbing Greenhouse Gas Emissions

Sharp is taking active measures to curb greenhouse gas (GHG) emissions resulting from its business activities in

an effort to contribute to the prevention of global warming.

In fiscal 2015, the Sharp Group’s GHG emissions decreased by 15% compared to the previous fiscal

year(decreased 200 thousand ton-CO2). However, due to the decrease of the production volumes, the improve

rate (baseline year :fiscal 2012) was 23%, which was 2% below the target.

Each factory is strengthening efforts involving all equipment and systems—ranging from production lines to

utility systems for supplying electricity, gas, and water.

Especially for the factories of LCD panels and electronic components, employees of production, engineering, and

environmental promotion group work together to reduce the amount of based-load energy consumption, applying

inverter equipment, and optimizing air conditioning in the clean rooms.


※

Sharp Group Activities to Control Greenhouse Gas Emissions

◂ 29 ▸


evaluation*

■Improvement rate of specific energy consumptionrate (baseline year: fiscal 2012): 25%

■Improvement rate of specific energyconsumption rate (baseline year: fiscal 2012):23%

△

Priority Objectives for Fiscal 2016■Improvement rate of specific energy consumption rate

(baseline year: fiscal 2012): 25%


■Improvement rate of specific energy consumption rate(baseline year: fiscal 2012): 27%

Amount of GHG Emissions of Sharp Group

(Fiscal year)

(Thousand tons CO2)

* HFCs,PFCs, Sulfur hexafluoride(SF6), nitrogen trifluoride(NF3), HCFCs

(Fiscal year)

Energy consumption rate of Sharp Group(baseline year:Fiscal 2012)

Improved by 23% from fiscal 2012

CO2 emissions form energy source PFC emissions*

Down 15% from previous year



Minimizing and Recycling Waste

Sharp has been working to reduce waste and to recycle as much of it as possible in an effort to contribute to

building a resource-recycling society.

In fiscal 2015, the amount of waste, etc. generated by the Sharp Group decreased by 26% (decreased 25

thousand tons) compared to the previous fiscal year, and final landfill disposal rate was 1%. The values achieved

more than the target.

As a result of ongoing efforts to recycle solid and liquid waste and to recover valuable resources, in fiscal 2015

Sharp factories in Japan achieved zero discharge to landfill* for the 15th consecutive year. Final landfill

discharge rate of Sharp factories was 0.002%.

In fiscal 2015, Tenri factory(Tenri city, Nara prefecture) was awarded a “Reduce, Reuse, Recycle Promotion

Council President's Prize”, for the efforts of reduction of waste fluid in production process.

* Sharp defines "zero discharge to landfill" as a final landfill disposal rate of less than 0.5%.Final landfill disposal rate (%) =Amount of landfill disposal ÷ amount of waste, etc. generated × 100.


Curbing the Amount of Waste, etc. Generated by the Sharp Group


evaluation*

■Final landfill disposal rate of 1.1% or less ■Final landfill disposal rate of 1.0% ○

Priority Objectives for Fiscal 2016 ■Final landfill disposal rate of 1.0% or less


■Final landfill disposal rate of 1.0% or less

Amount of Waste, etc. of Sharp Group Final landfill disposal rate of Sharp Group

(Thousand tons)

(Fiscal year)

(Fiscal year)

Down 26% from previous year



Effective Management of Chemical Substances and Risk management

Sharp meticulously controls chemical substances used at its factories. When introducing new chemical

substances and new handling equipment, Sharp conducts rigorous preliminary audits based on its own process

assessment system*1 to ensure employees’ safety and health and to minimize environmental impact. Sharp

strives for effective management of chemical substances: employees handling these go through regular

education and drills to prevent accidents, and checks are carried out through an environmental safety

operations audit system .

Sharp also monitors and reports the release and transfer of chemical substances covered by the PRTR Law*2 .

Of these PRTR chemicals, 18 were handled in Japan and 9 overseas*3 in quantities of 500 kg or more by one

or more plants during fiscal 2015.

In fiscal 2015, by promoting improvement of recycling process of used chemicals, the Sharp Group succeeded

to reduce release and transferred amount by 55%(decreased 479tons) from previous year, and was able to

achieve improvement rate of amount of PRTR by 48% compared with fiscal 2012, which is greatly above the

target.*1 An in-house system for preliminarily assessing and confirming the safety, environmental load, and other factors of chemical substances and

their handling equipment.

*2 PRTR: Pollutant Release and Transfer Register. A system that mandates the collection and dissemination of information, such as the amount

of harmful chemicals discharged and transferred.

*3 Sharp defines target substances based on laws in Japan.


Effectively Managing Chemicals Used in Factories

◂ 31 ▸


evaluation*

■Improvement rate of amount of PRTR

chemicals released and transferred per

production unit (baseline year: fiscal 2012) : 10%

■Improvement rate of amount of PRTR

chemicals released and transferred per

production unit(baseline year: fiscal 2012): 48%

◎

Priority Objectives for Fiscal 2016■Improvement rate of amount of PRTR chemicals

released and transferred per production unit(baseline year: fiscal 2012): 50%


■Improvement rate of amount of PRTR chemicalsreleased and transferred per production unit(baseline year: fiscal 2012): 50% and more

Amount of Chemical Substances Released andTransferred of Sharp Group

Amount of Chemical Substances Releasedand Transferred per production unit of Sharp Group(baseline year: Fiscal 2012)

(Fiscal year)

(Fiscal year)

(ｔ)

Improved by 48% from fiscal 2012Down 55% from

previous year



Proper managements and storage of PCBIn Japan, Sharp properly storages and manages PCB waste in accordance with The Act on Special Measures

concerning Promotion of Proper Treatment of PCB Wastes. Sharp is on track to finish treating PCB waste to

make it harmless by the legally set March 31, 2027 deadline.


Risk management of soil and underground watersTo minimize the risk of environmental pollution and accidents by chemical substances, Sharp set up in-house

standards and promotes risk management activities. Sharp takes proactive actions to prevent possible

accidents and pollution of chemicals, such as multiple leak prevention measures for the facilities which utilize

chemical substances.

Some factories which identified chlorine solvent pollution in the past have been regularly reporting notifications

to government authorities and local residents of the clean up progress.

Proper managements of air and water emissionsSharp properly manages pollutants that affect air and water quality by establishing voluntary standards that are

stricter than those set forth in law and regulations and than those agreed upon with local communities.

* Results for fiscal 2011 showed an increase in the phosphorous pollutant load, due to a change in production chemicalsused at Sharp Yonago Corporation; however, it was still below the maximum level allowed by law.

◂ 32 ▸

Atmospheric Emissions of Sharp Group in Japan

Emissions into Water Areas of Sharp Group in Japan

Nox Emissions Sox Emissions

COD(Chemical Oxygen Demand) Nitrogen Pollutant Load Phosphorous Pollutant Load

(Fiscalyear)

(Fiscalyear)

(Fiscalyear)

(Fiscalyear)

(Fiscalyear)

*


Sharp Group Reduces the Amount of New Water Used and Uses More Recycled WaterSharp is striving to make effective use of water resources by not only reducing the amount of new water, but also by expanding the use of recycled water.The volume of new water used by the Sharp Group in fiscal 2015 decreased by 8%(reduced 0.7 million m3) compared to the previous fiscal year. However, due to reduce of production volume, the improvement rate of volume of new water used per production unit(baseline year: fiscal 2012) remains 17% which was 5% below the target.The Kameyama Factory (Kameyama, Mie Prefecture, Japan) and the Mie Factory (Taki District, Mie Prefecture, Japan) require a large amount of water in the production process for LCD panels. At both factories, Sharp has adopted a closed-loop water recycling system that recovers and reuses nearly 100% of the water discharged from the production process. Through measures such as this, the Sharp Group is maintaining a recycling rate*of at least 60%.

* Recycling rate = Amount recycled ÷ (amount of new water + amount recycled)

Effectively Using Water Resources

◂ 33 ▸


evaluation*

■Improvement rate of volume of new water used perproduction unit (baseline year: fiscal 2012): 22%

■Improvement rate of volume of new water used perproduction unit (baseline year: fiscal 2012): 17%

△

Priority Objectives for Fiscal 2016■Improvement rate of volume of new water used per

production unit (baseline year: fiscal 2012): 22%


■Improvement rate of volume of new water used perproduction unit (baseline year: fiscal 2012): 22% and more

Volume of New Water Used of Sharp Group

Maintainingat least 60%

Volume of new water used per unit produced of Sharp Group(baseline year: Fiscal 2012)


(Million m3)

(Fiscalyear)

(Fiscalyear)

Water Recycling Rate of Sharp Group

(Fiscalyear)

Improved by 17% from fiscal 2012Down 8% from

previous year



Reducing the Environmental Impact of Logistics in JapanSharp observes a rule set forth in the Japanese Law Concerning the Rational Use of Energy (Energy

Conservation Law) that requires specified shippers to reduce CO2 emissions per shipping volume by 1% or

greater per year. Sharp Group in Japan is working to steadily reduce the environmental impact and costs

associated with logistics by improving transport and load efficiencies and by shifting to environmentally friendly

modes of transport (modal shift).

In fiscal 2015, Sharp Group CO2 emissions from shipping activities in Japan were 19 thousand tons (down 21%

from the previous fiscal year). An average annual reduction of 10.1% for the most recent five years(from fiscal

2011 to 2015) has been achieved.

Sharp is steadily shifting from conventional trucking to more environmentally friendly modes of transport, such

as shipping (non-international coastal trading vessels) and rail (Japan Railways containers). Through overall

efforts in transport in fiscal 2015, Sharp was able to maintain the rate of modal shift at 23.2%, which is the same

level of previous fiscal. And, by unloading imported goods at harbors chosen for their proximity to their main

sales locations, Sharp is reducing re-transport between distribution centers. These efforts enable Sharp to

reduce the environmental impact of its distribution activities.

As in fiscal 2014, Sharp was certified in fiscal 2015 with an Eco Rail Mark * by the Ministry of Land,

Infrastructure, Transport, and Tourism and the Railway Freight Association.

* Products or companies that use a certain amount of rail transport for freight are given Eco Rail Mark certification. Products orcompanies use the mark to provide consumers a criterion for choosing products

Reducing the Environmental Impact of International Logistics

Sharp has a wide range of initiatives to reduce the amount of CO2 that is emitted as a result of international and

intraregional shipping. The company is reducing airfreight volume as it switches to environmentally friendly modes

of transport, and it is also improving load efficiency. Further, it is reviewing shipping routes and switching to

harbors that are closer to the final destinations for products. Sharp is also switching to suppliers located closer

to its factories.

In fiscal 2015, the CO2 emissions from international and intraregional transport of products and devices produced

and sold by Sharp Corporation came to approximately 208 thousand tons, which was reduced by 0.6% from

previous fiscal year.

Reducing Logistics-Related Environmental Impact


evaluation*

■Reduce by average of 1% each year in Sharplogistics in Japan(average for fiscal 2011 to 2015)

■Reduce by average of 10.1% each year (averagefor fiscal 2011 to 2015)

◎

Priority Objectives for Fiscal 2016 ■Reduce by average of 1% each year (average for fiscal 2012 to 2016)


■Reduce by average of 1% each year (average for fiscal 2013 to 2017)

Environmental Activity : Logistics



Expanding the Recycling of Used Products

As a member of the B Group*1 for home appliance recycling, Sharp has constructed—and is operating—a highly efficient recycling system consisting of 18 recycling plants in Japan. In fiscal 2015, Sharp collected about 1.44 million units(101% of the previous fiscal year) of the four types of appliances covered by the Home Appliance Recycling Law. For all four appliance types, the B Group's rate of recycling greatly exceeded the legally stipulated levels*2. *1 The B Group consists of Sharp Corporation, Sony Corporation, Hitachi Appliances, Inc., Fujitsu General Ltd., Mitsubishi Electric Corporation, and

other companies.*2 Recycling rates of 80% for air conditioners, 55% for CRT TVs/74% for flat-panel TVs, 70% for refrigerators/freezers, and 82% for washing

machines/dryers) .

Recycling Four Kinds of Home Appliances in Japan (Air Conditioners, TVs, Refrigerators, and Washing Machines)

Reusing and Recycling Copiers and MFPs in JapanSharp is reusing and recycling copiers and MFPs collected both through Sharp distribution channels and through common industry channels. In fiscal 2015, approximately 25,000 used copiers and MFPs were collected for either reuse or recycling. The company is also collecting used toner cartridges and remanufacturing them to the same quality standard of new products, thus assuring that customers will always get the same high quality. Sharp designs its toner cartridges for easy reuse and recycling; this ensures durability and reduces the amount of time needed to reprocess used cartridges.

Recycling Used Products OverseasIn September 2007, SEC—Sharp's manufacturing and sales subsidiary in New Jersey—established the Electronic Manufacturers Recycling Management Company, LLC (MRM)*4 tasked with recycling audio-visual products, especially TVs, the MRM program has since expanded nationwide to offer recycling opportunities at approximately 1,298 collection points. Working in compliance with the laws and regulations of each state, MRM recycled approximately 47,330 metric tons of used consumer electronics in fiscal 2015.*4 A Cooperative corporation among Panasonic Corporation of North America, and Toshiba America Consumer Products, LLC, and SEC.

◂ 35 ▸


evaluation*

■Increase amount of recycled plastic bydismantling to smaller pieces by hands

■Instead of increasing amount of recycled plastic,improved the grade of plastics collected from usedrefrigerators by removing stainless steels whichstick to the plastic as reinforcement materials

△

Priority Objectives for Fiscal 2016■Construct high-efficiency recycling line to deal with increase

number of flat-panel TVs sent to recycling


■Upgrade and expand high–efficiency recycling line of flat panel TVs, and improve the grade of collected materials

Effectively using resources and Improving Recycling efficiency at the Recycling PlantSharp and Kansai Recycling Systems Co.,ltd *3 are joining forces to make effective use of resources and to improve recycling efficiency in Japan. In fiscal 2015, they originally planned increasing amount of plastics by fine dismantle of used product by hands. However, to make a higher effect on the recycling, they changed target to improve the grade of plastics collected from used refrigerators by removing stainless steels which stick to the plastic as reinforcement materials. In refrigerator recycling process, originally some of refrigerant collection process was conducted outside of the recycling lines. They changed the place of this process to inside the collection lines, and it contributed to improving not only efficiency but also safety in the recycling.*3 A consumer electronics recycling company established in Japan with joint investment from Sharp, Mitsubishi Materials

Corporation, and four other companies.

Environmental Activity : Recycling



Environmental Technologies That Contribute to a Sustainable,Recycling-Based Society

As the company strives to contribute to the creation of a sustainable, recycling-based society, Sharp

considers environmental friendliness a key factor in all stages of a product's life cycle, from design to

manufacture to disposal. In particular, Sharp is focusing on recycling materials recovered from used products.

Sharp and Kansai Recycling Systems Co., Ltd. *2 jointly developed closed-loop plastic material recycling

technology that enables the repeated recovery of plastic from used consumer electronics products as well as

the reuse of that plastic in parts of new consumer electronics products for the Japanese market. This

technology has been in practical use since fiscal 2001.

Thanks to the development and introduction of technologies that integrate everything from recovery to quality

control, Sharp has been able to increase the volume of recyclable plastic year after year. These technologies

include a technology for recovering high-purity PP *3 from mixed plastic and metal parts and a

technology for improving the properties of recovered PP, PS *4 and PC+ABS *5 materials so that their quality

is on a par with that of new materials. Sharp is also developing another technology that will give materials

added value by imparting properties such as flame retardancy and antibacterial effects, with the aim of

expanding applications for recycled plastic.

In order to make effective use of materials recovered from discarded flat-panel TVs whose quantity is

expected to rise greatly in the future, in 2015 fiscal year, Sharp started to develop technology for adding extra

value to recycled plastic material (flame-retardant HIPS) which is largely used in the back cabinets. With

optimal blending of flame-retardant HIPS possessing high impact resistance as well as flame retardancy and

GPPS *6 possessing high stiffness, Sharp developed a new recycled plastic material having impact resistance,

retardancy and stiffness in a balanced manner. In fiscal 2016, Sharp will develop technology for practical

application of this recycled plastic material.

Expanding Closed-Loop Plastic Material Recycling Technologyfor the Repeated Reuse of Plastic

*1 High-impact polystyrene (general-purpose polystyrene given impact resistance by adding rubber).

*2 A consumer electronics recycling company established in Japan with joint investment from Sharp, Mitsubishi Materials Corporation, and four other companies.

*3 Polypropylene *4 Polystyrene *5 A polymer alloy of polycarbonate and acrylonitrile, butadiene, and styrene (a macromolecular material given

new properties as a result of mixing in several types of polymers). *6 General-purpose polystyrene （a plastic, which has high transparency and processability, used as material for trays of refrigerator ).

◂ 36 ▸


evaluation*

Develop technology for adding extra value to recycled plastic materials (flame-retardant HIPS*1): Development of basic technology

■Develop technology for adding extra value to recycled plastic materials (flame-retardant HIPS): Development of basic technology（Establish formula for imparting properties）

○

Priority Objectives for Fiscal 2016■Develop technology for practical application of recycled

plastic material (flame-retardant HIPS)


■Practical application of recycled plastic material(flame- retardant HIPS)

Environmental Activity : Recycling



While Sharp's business activities impact

biodiversity, the company also benefits

from the resources that biodiversity

provides. That is why Sharp is globally

promoting its biodiversity protection

through business and social action

programs.

Based on the Sharp Group Policy on the

Sustainable Support of Biodiversity, Sharp

formulated the Sharp Biodiversity Initiative

in November 2009. The Initiative describes

biodiversity in an easy-to-understand

manner, and it outlines concrete measures

for business activities and social action

programs that take biodiversity into account.

In fiscal 2015, each Sharp base conducted various activities geared to its specific circumstances

such as protection of the Sana river which flows near Mie Plant(Taki District, Mie Prefecture).

Biodiversity Protection through Business and Social Action Programs

Protecting Biodiversity

◂ 37 ▸

Environmental Activity : Recycling/Protecting Biodiversity

Environmental Technologies That Contribute to a Sustainable,Recycling-Based Society

1

Recycling Plastic Recovered from the 4 Types Home Appliances

Dismantling by hand

Recycled plastic

Mixed plastic

High-purity PP separation(PP recovery)

Formula for improving properties(mix with additive)

*Blending multiple types of resins and uniformlydispersing them into each other.

Make different resins compatible with one another*, improve physical properties and durability

Formula for imparting properties(mix with additives, blend resins)

*A resin given new properties as a result ofmixing in several types of resins.

Flame retardancy and weather resistance pigmentation (to make foreign particles hard to see), polymer-alloy *

Single-ingredient materials

Coarse shredding



Sharp has production activities around the world and chooses who it will procure local parts, materials, and equipment

from by providing all Japanese and overseas business partners with an equal opportunity to do business with Sharp.

This opportunity includes a fair evaluation of whether a supplier meets Sharp‘s requirements for quality , standards,

and performance. Sharp aims to maintain impartiality and fairness in all purchasing activities, in order to facilitate a

prosperous coexistence with business partners.

Close Communication and Mutual UnderstandingTo ensure continued mutual growth and prosperity with its suppliers, Sharp is going beyond initiatives related to the

quality, price, and delivery of parts and materials. Through CSR initiatives across the supply chain, Sharp is also

seeking to fulfill its social responsibilities over a wide range of areas that include product safety, environmental

protection, human rights and labor, and health and safety.

In both the Basic Purchasing Principles and the Sharp Supply-Chain CSR Deployment Guidebook, which summarizes

Sharp's basic concept based on the Basic Purchasing Principles, Sharp clearly declares the implementation of CSR

initiatives—such as complying with all laws, regulations, and social standards, and protecting the environment—as one of

its procurement policies. Specifically, these include prohibition of child/forced labor and discrimination, as well as

compliance with labor-related laws, such as those dealing with employees' right to organize and their right to

collective bargaining. Sharp also asks its business partners to actively promote such activities. To deepen the

understanding between Sharp and its business partners, Sharp in-house company and business divisions ,overseas

production bases have been holding regular roundtables and meetings for their suppliers. In addition, Sharp exchanges

information with supplier sales representatives on a daily basis.

Related information:>Basic Purchasing Principles

Audits and Education to Ensure Full Compliance with the Subcontract ActTo comply with the Subcontract Act (The Act Against Delay in Payment of Subcontract Proceeds, etc. to

Subcontractors) in Japan, Sharp Corporation and its affiliated companies implement compliance checks and in-house

education on an ongoing basis. Regarding compliance checks as usual, to encourage internal voluntary reporting of

compliance issues and further strengthen precautionary measures to prevent recurrence of problems, the material

purchase departments of in-house company and business divisions, as well as Head Office groups and affiliated

companies, began self-audits in which they check how well they are complying with the Subcontract Act. Furthermore,

Sharp Corporation and its affiliated companies in Japan carried out periodic internal audits, and enlightened these

employees the Subcontract Act.

Social Activities： Fair and Impartial Procurement Activities Determining Procurement from the Standpoint of Providing Equal Opportunity and Fair Evaluation

http://www.sharp-world.com/procure/basic/index.html

◂ 39 ▸

※Electronic Industry Citizenship Coalition, an influential international organization promoting supply chain CSR.


evaluation※

■Implement CSR procurement surveys based oninternational CSR standards

■Expand CSR audits in collaboration with externalaudit organizations

■Revised the survey content in accordance with theEICC Code of Conduct and conducted surveys ofapproximately 2,000 suppliers (at approximately3,600 sites) worldwide

■Conducted CSR audits using external auditorganizations in Japan and overseas

○

Priority Objectives for Fiscal 2016■Develop and trial of risk assessment process, including selection of

suppliers to be audited, based on importance degree of transaction andevaluation results of survey


■Firmly establish functions for CSR procurement surveys and audits



Enlightenment and survey for suppliersTo help its suppliers gain an understanding of Sharp's CSR philosophy and to promote CSR-related measures

among suppliers, Sharp created and distributed its own Sharp Supply-Chain CSR Deployment Guidebook, and an

article on CSR initiatives that requests adherence to the guidebook was added in the Basic Parts Purchase

Agreement. In addition, Sharp conducts CSR/Green procurement surveys based on this guidebook annually and

requests to low evaluation suppliers to submit a corrective action plan and provides necessary support to raise

the level of their CSR initiatives continuously.

In April 2015, Sharp revised the content of its guidebook based on the EICC ※ Code of Conduct, a global

standard for the electronics industry.

After fiscal 2016, Sharp will continue to conduct the survey and promote CSR initiatives throughout the supply

chain.

Related information:>CSR Procurement

Social Activities： Fair and Impartial Procurement Activities

Promoting CSR across the Supply Chain

http://www.sharp-world.com/corporate/eco/supplier/csr/index.html

In fiscal 2016 , Sharp will nurture further trust with clients

and strengthen its partnership by responding appropriately to international and clients’

CSR standard s as well as by establishing and expanding its CSR audit system.

◂ 40 ▸

With global business operations, CSR requests from stakeholders including

our clients in line with the with the international CSR standards is

demanded by stakeholder commencing with business clients of Sharp.

Sharp has started CSR audits using external audit organizations to conduct

CSR Audits since fiscal 2014 to promote CSR efforts that meet the

expectations of stakeholders .In fiscal 2015, Sharp conducted CSR audits at

factories in Japan and China ,and made necessary improvements.

CSR audit in China

※1 For details about our basic policy, please click here.※2 Conflict-Free Sourcing Initiative (an international organization engaged in the conflict minerals issues.)

JEITA is also a member of CFSI as a partner association.※3 Conflict Minerals Reporting Template, established and issued by CFSI.※4 Conflict Free Smelter Program


Initiatives for Dealing with the Conflict Minerals IssueSharp respects for the spirit of the conflict minerals provision of the Dodd-Frank Wall Street Reform and

Consumer Protection Act established in the US in July 2010, and conducts appropriate measures with the OECD

Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas

to ensure compliance with the basic policy ※1 that any raw materials, parts, products, etc. which include any

conflict minerals shall neither be procured nor used.

From fiscal 2012, by participating in the Responsible Minerals Trade Working Group of the Japan Electronics and

Information Technology Industries Association (JEITA), Sharp has enhanced coordination with CFSI ※2 , the

Japanese automotive industry and related industries, and conducts conflict minerals surveys based on requests

from client companies, by industrial-standard reporting template (CMRT※3).

In fiscal 2015, to contribute to solving the Conflict Minerals Issues, Sharp carried out various activities in

collaboration with industries, such as improving its own survey system to strengthen check function of CMRTs

from suppliers, joint hosting the Conflict Minerals Inquiry Briefings for suppliers in collaboration with the JEITA

Responsible Minerals Trade Working Group, sending outreach letters to encourage smelters or refiners to

participate in audit program (CFSP ※4), etc..

In fiscal 2016, Sharp continuously promotes its responsible minerals procurement activities through further

improving its survey system and expanding due diligence efforts guided in OECD guidance.

Social Activities： Fair and Impartial Procurement Activities

CSR Audit Status

http://www.sharp-world.com/corporate/eco/supplier/conflict_minerals/index.html

◂ 41 ▸


evaluation※

■Improve global qualityJapan: Strengthen quality-improvement

capabilities by acquiring technical knowledge

Overseas: Strengthen human resource developmentmeasures to improve quality

■Improve global qualityJapan: Respond better to regulation audit and

serious quality problems.Overseas: Held practical training on quality related

technology in China and the ASEAN Region

○

Priority Objectives for Fiscal 2016■Enforce functions and strengthen human resource development to

prevent serious quality problems including a law violation


■Globally deploy quality- and service-personnel trainingGlobally train experts to have both quality and service expertise and thecapability to provide guidance.


Social Activities： Quality

Ensuring Quality and Safety*Self evaluation:◎ Achieved more than targeted / ○ Achieved as targeted / △ Achieved to some extent

Basic Stance and Vision on Service and QualityTo gain customer trust and improve customer satisfaction, the Sharp Group meets customer needs and demands,

offers high-quality products and services that are safe, reliable, and environmentally friendly.

Quality Assurance SystemSharp specifies the quality levels it provides to customers, thus ensuring that all employees in product planning,

design, production, sales, and after-sales service aim for the same targets in their ongoing pursuit of quality

improvement. All Sharp Corporation business divisions and all production sites of consolidated subsidiaries in

Japan and abroad have obtained the international ISO 9001 certification of quality management.

They have also adopted the SHARP Corporation Standards—the Sharp Group's proprietary quality assurance

standards—and conduct various quality assurance activities in each stage of the product-making process— from

planning, design, and manufacture to testing/evaluation and marketing.

◂ 42 ▸

From the moment a customer first considers buying a Sharp product, Sharp's Customer Assistance Center in

Japan always aims to meet or exceed customer expectations.

All Customer Assistance Center agents (operators) are periodically monitored by a response-quality manager.

Based on those results, agents undergo training to improve their responsiveness in terms of providing assistance

that matches the customer inquiry as well as their methods of phrase ,speaking and listening. This enables the

agents to maintain a high level of response skills while also boosting their awareness of customer satisfaction.

In fiscal 2015, Sharp enhanced the support section of its website so that customers can solve problems without

calling the Customer Assistance Center. The website provides enhanced customer-oriented services that include

Fault Diagnosis Navigation, where customers themselves diagnose the symptoms and solve problems(expansion of

the symptom , presentation of the repairing rough estimate cost in case repairing is needed) by following

instructions on the screen.

There's also the Visual Guide, which employs video images to explain how to maintain products—something that can

be difficult to explain with just words and illustrations.

The number of inquiries to the Customer

Assistance Center went down after peaking in 2010.

It‘s the effect by product improvement activity for

Quality and usability improvement ,online support

and toll-free number that gives automated responses

to help callers solve common issues .

Sharp will promote continual improvement in order to

increase Customer's convenience.


evaluation※

■Improve global customer satisfactionJapan : Increase customer satisfaction by enhancing

service capabilities and customer responseskills

Overseas : Promote measures to raise customerresponse skills in the ASEAN region

■Improve global customer satisfactionJapan : Distributed CS manual and conducted

skill check to Service CentersOverseas : Held CS mind training and developed local

trainer in Thailand ,Malaysia and Vietnam

○

Priority Objectives for Fiscal 2016■Fixation and expansion of the CS mind training in the ASEAN area,

upbringing promotion of the local trainer


■Increase customer satisfaction by the global expansion of enhancingservice capabilities and customer response skills


Social Activities： Customer Satisfaction

Enhancement of Customer Satisfaction*Self evaluation:◎ Achieved more than targeted / ○ Achieved as targeted / △ Achieved to some extent

Customer Service That Exceeds Expectations

◂ 43 ▸

In order to deliver products that customers find easy to use, Sharp is

practicing UCD.UCD is a policy that make effort to deliver products and

service with Customer Satisfaction by having the point of view of a

customer, understands, thinks and reflects to a design based on the

international ISO 9241-210 standard .

Sharp established original UCD basic policy and 8 principals of UCD

shared throughout company. Sharp reflects these policies on determining

spec and design of products in process of product development with

investigating customers' latent dissatisfaction and needs and repeat

assessing and improving to develop products and services that are easy

to use and appealing.

In addition Sharp also promotes the manufacture of products that take into consideration universal design based

on UCD basic policy, so many more Customers , irrespective of the nationality, the age, the gender, with or

without handicap, can comfortably use its products and services.

As of June 2016, 136 models of 17 Sharp products had been recognized as universal design home appliances by

the Association for Electric Home Appliances in Japan.

In order to deliver products that customers find easy to use, Sharp compile customer`s feedback by various way

to create products . Feedback received from customers during telephone assistance at the Customer Assistance

Center, during repair service visits, and In questionnaires and interview and usability tests (observing how

customers actually use Sharp products) is shared throughout the company, while protecting the anonymity of the

customer. The feedback is used to understand, from a user's point of view, challenges related to planning, design,

development, quality, sales, service, and other areas

Sharp also actively fosters human resources through training and creates assessment standards for supporting

manufacturing from the user's point of view in order to conduct these activities continually on company-wide .

Usability test


Social Activities： Customer Satisfaction

Making Easier-to-Use ProductsActivities of user-centered design(UCD)

Investigating Customers' Dissatisfaction and Needs and Reflecting Them in Product Design

◂ 44 ▸

Sharp is making effort to disclose information adequately as well as enhancing its communication with shareholders and investors

through general shareholders' meetings and IR (investor relations) activities within Japan and abroad that respond to diversifying needs.

In fiscal 2015, Sharp’s IR activities included one-on-one meetings with institutional investors and analysts, briefings on financial

results, visits to overseas institutional investors by Sharp executives, and participation in conferences sponsored by securities

companies. Detailed financial information was disclosed in IR documents that included summaries of financial results and presentation

materials. Moving forward, Sharp will disclose information designated under the laws and regulations of Japan, and it will also actively

disclose other information, such as business overviews and management policies.

Sharp holds ordinary general shareholders’ meetings earlier than many other Japanese companies, sends out early notices of the

meetings and discloses notices of meetings before sending. It also strives to create an environment that enables shareholders to easily

exercise heir voting rights. Efforts include participating in an electronic voting platform (for institutional investors), posting English

notices about the meetings on its website, and allowing shareholders to exercise voting rights by computer and cell-phone. Sharp

strives to provide the accurate information that shareholders need to make appropriate decisions.

Sharp has effectuated regulations restricting insider trading, established controls on undisclosed material facts

("insider tips"), and instituted restrictions on the buying and selling of stocks and other securities. Sharp has also

implemented in-house training related to insider trading. This training includes, among other approaches, an

educational campaign on the corporate intranet that targets Sharp Group employees in Japan with the aim of

preventing insider trading by Sharp Group directors, auditors, executive officers, or employees.

In addition, given the importance of disclosure, when "material facts specified in the Financial Instruments and

Exchange Act" and/or "important company information that should be disclosed in a timely manner as stipulated by

securities exchanges" is generated, Sharp does its utmost to promptly disclose and publicize the relevant details.

Further, regarding media and analyst coverage, Sharp deals with it while fully honoring the spirit of disclosure and remaining attentive so

as not to violate insider-trading regulations.

Fiscal 2015 Objectives Fiscal 2015 Achievements Self evaluation※

■Enhance IR communications by Sharpexecutives

■Continued visits to overseas institutionalinvestors, participated in conferences ,startedtelephone conference with overseasinstitutional investors after announcement offinancial results.

○

Priority Objectives for Fiscal 2016■Increase conference participation to strengthen information

transmission


■Continue to enhance information disclosure to shareholders andinvestors and improve communications through various IR initiatives

■ FTSE4Good Global Index（UK）

■ STOXX Global ESG Leaders Index （Switzerland）

■ Morningstar Socially Responsible Investment Index (Japan)


Social Activities： Shareholders and Investors

Communicating with Shareholders and Investors*Self evaluation:◎ Achieved more than targeted / ○ Achieved as targeted / △ Achieved to some extent

Preventing Insider Trading

SRI (Socially Responsible Investment)As of July 2016, the following SRI ratings agencies had given Sharp a favorable CSR rating or included Sharp in their SRI indices.

◂ 45 ▸

The Sharp Group Charter of Corporate Behavior and the Sharp Code of Conduct stipulate that Sharp respects

human rights and the characteristics in all business activities

〈 Excerpt from the Sharp Group Charter of Corporate Behavior 〉

The Sharp Group respects fundamental human rights and does not engage in discriminatory

actions or human rights violations in any of its business activities. The Sharp Group does not

sanction child labor or forced labor.

〈 Excerpt from the Sharp Code of Conduct 〉

1) We respect—and will not violate—fundamental human rights and the dignity of individuals in

all business activities. If it becomes evident that any of our business activities, products, or

services has a negative impact on human rights, we will take corrective action.

2) We do not allow child labor or any form of forced labor, and we support initiatives for the

effective abolition of such labor practices.

3) With respect to all corporate activities—including employment practices concerning

recruitment, salary, promotion, and training opportunities—we do not discriminate based on

nationality, race, ethnic group, color, sex, health status, pregnancy, sexual orientation, age,

marital status, religion, creed, social status, birth, property, bodily feature, physical or

mental disability, political opinion, and the like.

4) We will refrain from all unacceptable acts and behavior, including any kind of abuse,

mocking, verbal insult, sexual harassment, or power harassment.

5) On the basis of international standards and applicable laws, we respect employees' right to

the freedom of association—for example, their right to join a union, carry out protests,

participate in workers' councils, and the like—without being subjected to retaliation,

intimidation, or harassment.

In Japan, Sharp continuously carries out human rights education activities, one example being human rights training

conducted annually at each site. (A total of 18sessions were held in fiscal 2015). Sharp also gives newly appointed

heads of overseas bases booklets covering such topics as respect for human rights. Overseas, Sharp promotes

human rights protection at each site in line with local laws.


Social Activities： Efforts Related to Human RightsGuiding Principles

Activities Related to Respect for Basic Human Rights and Personal Dignity

Good Labor-Management Relationship through DialogueSharp respects employees' right to organize and the right of collective bargaining based on the laws of each

country or region and works to strengthen its trusting relationships with labor unions.

In Japan, Sharp holds monthly meetings with labor-management heads. These include the Central Labor-

Management Council, which involves top executives from both sides, and local labor-management meetings at each

site and affiliate, where opinions are exchanged on business conditions and on labor-management issues pertaining

to the work environment.

In Europe, Sharp holds European Works Council meetings every year to review managerial issues throughout Europe.

In China, companies are obligated to hold meetings with employee representative assemblies to decide on issues

such as employee working conditions. In line with relevant local laws, Sharp strives to build cooperative labor-

management relationships.

◂ 46 ▸

Sharp has implemented a variety of personnel, education, and training systems that respect initiative and diversity and

that are designed to develop the character, motivation, and creativity of each employee.

As management becomes more globalized, it becomes

increasingly necessary to foster personnel who can actively

communicate with people of different cultures and values as

well as make use of those differences. In an effort to develop

personnel who can work actively in the global field while

making the most of diversity, Sharp has established a human

resource and education system based on the 4Gs (Global

formation)—GATE, G-BANK, GRID, and GOAL.


evaluation※

■Steadily implement human resource developmentmeasures1. Nurture future executive leaders2. Conduct job-level-specific stratified training3. Develop global human resources

■Steadily implement human resource developmentmeasures1. Conducted training to develop future executive

leaders to supervisors2. Conducted to managers and younger employees3. Develop global human resources

○


■Reconstruct measures for human resource development to recovery ofcompany1.Reconstruct systems for human resource development2.Challenge to new measures3.Construct measures to enhance language skill (English and

Chinese) autonomously


■Reconstruct functions for human resource development1. Corporate human resource development functions and structures2. Human resource development functions and structures according to

each business division.


Social Activities ： Human Resource Development Personal system

Human Resource Development*Self evaluation:◎ Achieved more than targeted / ○ Achieved as targeted / △ Achieved to some extent

Personnel, Education, and Training Systems That Respect EmployeeInitiative and Diversity

Next-Generation Executive Leader Training, Expert Training, andJob-Level-Specific Stratified TrainingThe Sharp Leadership Program targets younger employees in semi-managerial or supervisory positions, with the objective

of systematically nurturing executive leaders. The Challenge Course, for younger employees in semi-managerial positions,

is intended to enable early promotion of younger personnel. In addition , Sharp provides Expert Training to develop

technical and sales experts and Job-Level-Specific Stratified Training to give systematic training in the knowledge, skills,

and management techniques required at each stage after joining the company.

Global Human Resource Development

Developing Diversity Management


evaluation※

■Continue to strengthen efforts at diversityinclusion▶Continue to strengthen and promote variousmeasures to raise the rate of female managersto 5% by fiscal 2018

▶Increase female recruits: aim to hire newfemale recruits at a rate of 50% forbusiness (clerical) work and 10% fortechnical work

▶Maintain 2.3% employment rate for thephysically or mentally challenged

■Strengthen efforts at diversity inclusion▶Rate of female managers 2.6% as of April 1,2016(up from 2.5% as of April 2015)

▶New female recruits in fiscal 2016 at a rate of 58%for business (clerical) work and 15% for technicalwork

▶Maintained targeted employment rate of 2.3% forthe physically or mentally challenged as ofJune 2016 with rate of 2.39%

○

◇ Personnel Declaration System

All employees submit a career development plan along with a self-assessment of their job aptitude.

Sharp then stores this information—along with records of interviews with supervisors—in a personnel

database. This provides an overview of how employees are progressing with respect to their career goals.

By reviewing the database and various past job experiences, Sharp rotates employees to the multiple types

of fields and for them to foster broad scope of expertise.

◇ Step-Up Campaign (Qualification Acquisition Encouragement Plan)

To support employee self-development, Sharp offers monetary rewards to employees who have acquired

qualifications, with the amount depending on the difficulty of acquiring the qualification. This plan covers

about 250 qualifications, including some for field-specific techniques and skills, some directly related to daily

duties, and some for language skills—essential in the development of globally minded employees.

◇ Award System

Sharp honors domestic and overseas employees and divisions/departments that have achieved outstanding

performance. In fiscal 2015, approximately 50 awards were presented to about 3,300 employees.

◂ 47 ▸


■Promote measures based on action plan of the law to promote the activeengagement of women in society

■Maintain the targeted employment rate for the physically or mentallychallenged


■Expand and enhance promotion activities for non-Japanese employees inJapan, physically or mentally employees,elderly employees, and others

■Promote measures based on action plan of the law to promote the activeengagement of women in society

■Maintain the targeted employment rate for the physically or mentallychallenged


Social Activities ： Personal systemDiversity Management

Talent Development and Motivation-Boosting Programs Personal system


1) Diversity management is a human resources strategy for utilizing adiverse range of employees; it is also a business strategy.

2) At Sharp, diversity is built upon the company's business philosophy.3) Formulate and pursue programs aimed at capitalizing on the unique

individual attributes of various employees—including women, non-Japanese employees in Japan, the physically or mentally challenged,and retirees—and promote their active participation in the company.

4) Consistently promote diversity.5) As a foundation for promoting diversity, strive to ensure that systems

supporting the balance between work and family life becomewidespread and take root.

6) Work to build a corporate environment that accepts diversity.

◂ 48 ▸

Sharp developed action plan based on the law to promote the active engagement of women in society enforced

on April 2016.In addition sharp work positively to promote further participate of female employees to provide

better products and service for social contribution by improving the female ratio in all job categories as well as

increasing the female manager.

＜Measures＞（By end of fiscal 2018）

・ More than 5 % of female ratio of the manager

・ More than 20 % of employee ratio of working flexible style


Social Activities ： Diversity Management

Concepts Underlying the Diversity Program

Promoting Activities of Female Employees

Expanding the Duties of Female EmployeesIn fiscal 2014, as part of its effort to promote diversity within the company, Sharp launched the "Eijo Program,"

which provides strategic training for female sales personnel. In 2015 sessions to increase sales skill and etworking

event with senior employees and new employees were held to build network across the departmental.

◂ 49 ▸

To support employees returning from childcare leave, Sharp held a reinstatement support seminar in fiscal 2014 ,

which was designed to encourage temporarily departed employees to recall their working frame of mind. The

seminar involved an explanation of the company's current circumstances and various support systems concerning

childbirth and nursing. As well, female employees who had earlier returned to work after taking childcare leave

shared their experiences and provided advice on how to balance work and child rearing. Attendees were also given

the opportunity to build networks with other working mothers in order to resolve anxiety about returning and

support for work actively.

To create a more employee-friendly workplace, Sharp has made efforts to establish a support system and

environment in which both male and female employees can participate in child rearing. In light of Japan‘s low birth

rate, diversifying work and life styles, and increase in double-income households, Sharp has revised its childcare

leave system to promote child rearing by male employees. As a result, for the past three years, approximately 150

male employees per year have taken childcare leave so that they could take part in child rearing. Sharp will

continue to support its employees' active participation in childcare and in family life with their children.



Supporting Female Employees Returning from Childcare Leave

Promoting Childcare Leave for Male Employees

Ever since Sharp founder Tokuji Hayakawa established the "accumulation of community service" as one of the "Five

Accumulations of Competency," ※ Sharp has been actively involved in social service and welfare. The entire Sharp Group

makes efforts to promote the employment of the physically or mentally challenged and to create a better work

environment for these employees.

Specifically, Sharp launched a recruitment website addressing the employment of physically or mentally challenged people.

This website contains information on initiatives to hire such individuals to work in the Sharp Group. Sharp is also striving

to make the company an easier place to work, through the use of support measures such as PC note-taking (a method for

conveying audio information by entering it into the keyboard of a PC) during training sessions attended by hearing-

impaired participants.

In fiscal 2015, there are approximately 350 challenged employees and Sharp Group (including affiliated companies)

employed met its goal for the percentage of physically or mentally challenged employees by maintaining the 2.3% level. As

of June 1, 2016, that percentage was 2.39%, exceeding the 2.0% rate mandated by law (as stated in the Act for

Employment Promotion etc., of Persons with Disabilities).

◂ 50 ▸

With the globalization of business, Sharp is working globally to secure and systematically train human resources who can

meet the needs of each workplace. In recent years, Sharp has promoted greater employment of international students and

people of other nationalities residing in Japan. As of April 2016, there are approximately 120 non-Japanese employees

from 20 countries (including Canada, Serbia, Peru, Rwanda, and China) working in various departments.

※Accumulation of trust, accumulation of capital, accumulation of community service, accumulation of human resources, and accumulation of trading partners



Expanding Opportunities for Non-Japanese Employees in Japan

Reemployment of Retirees

Promoting Employment of the Physically or Mentally Challenged

From 2001, Sharp introduced a professional employee system that reemploys employees who have reached the mandatory

retirement age of 60. This stems from the company's stance on promoting the utilization of senior employees who have a

strong work ethic. It also takes into consideration employees who wish to give back and contribute to society through the

skills and knowledge they have accumulated over many years.

Sharp reviewed its standards in response to the revised Stabilization of Employment of Older Persons Act, which came

into effect in April 2013. Sharp now reemploys, until the age of 65, any interested employees who have reached the

mandatory retirement age of 60.

◂ 51 ▸

In line with its promotion of diversity, Sharp supports its employees by creating a rewarding, safe, and healthy workplace. Sharp gives

employees a choice of work styles—allowing them to select the style that best suits them at various stages in their lives—thereby helping

them achieve a work-life balance that will enable them to lead rich lives both

at work and at home. Specifically, Sharp is expanding support programs

focusing on childcare and nursing care and distributing guidebooks and

providing other information to promote use of the programs. In addition,

to help employees realize an efficient working style that offers satisfaction

both at the company and at home, Sharp continuously promotes initiatives

like No Overtime Day and encourages employees to plan for and take their

annual paid vacation days. These efforts have earned high appraisal from

outside the company, with Sharp receiving certification from the Japanese

Ministry of Health, Labor, and Welfare based on the Act on Advancement

of Measures to Support Raising Next-Generation Children.

□Work-Life Balance Support Programs (Main Programs and Participation at Sharp Corporation)

Program Name Description

Participation(year and no. of persons)

Fiscal2013

Fiscal2014

Fiscal2015

Childcare Leave※

Allows a leave of any length until the last day of March following the child's first birthday or until the child is 18 months old.(In 2013–2014, 99.5% of those who took childcare leave returned to work.)<Childcare assistance grants>1) The 10-day period beginning at the start of the childcare leave period is treated

as a period with pay.2) An allowance of 60,000 yen a month is provided during the leave period (excluding

the 10-day period when salary is paid).

223(Men:1

61)

208(Men:1

62)

195(Men:1

29)

Reduced-HoursEmployment DuringChildbearing/Childcare

A system by which an employee can reduce work time for a maximum of three hours per day (in units of 30 minutes) during pregnancy. Also allows a female/male employee the same reduced-hours employment system until the last day of March after her/his child has reached the sixth year of elementary school.

33 34 24

Childcare SupportWork Program

Allows flexible work schedules (work day start and end times) until the last day of March after the child has reached the sixth year of elementary school. This allows an employee to shorten working hours up to an average of three hours per day in one-hour units.

454 465 426

Nursing Care Leave※

Allows an employee to take leave to care for a family member requiring nursing care for a total of two years (can be divided up).

7 9 8

Nursing Care SupportWork Program

Allows flexible work schedules (work day start and end times) for nursing care, as needed. Employee can shorten working hours in one-hour units up to an average of three hours per day.

4 7 5

※ Personnel evaluations conducted while an employee is on childcare leave or nursing care leave will never work against the employee in terms ofreceiving a raise or promotion

Other Programs

Multipurpose Leave, Multipurpose Leave Taken in One-Hour Units (or half-day units), Staggered Commuting Hours during Pregnancy, Guaranteed Reemployment after Childbearing/Childcare,Reemployment after transfer to another country of spousal ,Paternity Leave, Daycare Adaptation Leave, Reemployment after Nursing Care, Reduced-Hours Employment or Reduced Weekly Working Days for Nursing Care, Subsidies for Families of Single Employees Conducting Nursing Care, Travel Expense Subsidies for Single Employees Returning Home for Nursing Care, Nursing Care Leave(or half-day units), Nursing Leave(or half-day units),Home Helper Expense Subsidies, Leave of Absence/Increasing Half-Day Use of Annual Paid Holidays for FertilityTreatment, Fertility Treatment Financing System, Reduced-Hours Employment for Career Development Support, Volunteer Leave.


Social Activities ： Activities to Support Work-Life Balance

Work-Life Balance Guidebook and Nursing CareGuidebook


■Reduce work accidents, equipment and environmental accidents, andcompany car accidents

■Reduce loss of working days due to mental problems and illnesses■Review a promotion structure for health management and conduct

initiatives based on Healthy Sharp 23 goals


■Eliminate accidents resulting in lost workdays■By the end of fiscal 2017, reduce by 10% or more (compared to fiscal

2013) the total number of sick leave days taken due to mental problemsand illnesses

■Establish a health management promotion structure■Achieve Healthy Sharp 23 numerical targets (reduce the percentage of

employees who have a BMI of 25 or higher to 23.3%, smoking rate to21.7%, and achieve a regular exercising rate of 28.3%)

◂ 52 ▸

Sharp Basic Policies on Safety and Health＜Basic Philosophy＞

The Sharp Group regards protecting the safety, security ,and health of employees all over the world as

indispensable to its business activities, and is dedicating appropriate management resources in a spirit of

Sincerity and Creativity, in order to achieve a safe and pleasant working environment.

Sharp promotes fully implement of the health of its employees and their families measures in addition to its

framework on safety and health activities. In order to show Sharp's resolve, the Central Safety and Health

Committee was renamed the Central Safety, Hygiene, and Health Committee.

In order to ensure that activities for the maintenance and improvement of safety, hygiene, and health go smoothly

at each business location, Sharp holds Central Safety, Hygiene, and Health Committee meetings that bring the

company and the labor union together to decide basic measures for safety, hygiene, and health from a company-

wide perspective. The Committee formulates annual company-wide policies and basic measures, and promotes the

implementation of these measures at business locations. It has also organized a team consisting of Central Safety,

Hygiene, and Health Committee members to conduct safety and health inspections at each site.


evaluation※

■Reduce work accidents, equipment andenvironmental accidents, and company caraccidents

■To reduce mental problems and illnesses,strengthen and promote measures to deal withtheir possible causes, such as long work hoursand power harassment

■Make "Healthy Sharp 23" (name of program withtargets and measures for employee health bythe end of 2023) an integral part of the workplace,build systems and promote concrete measures

■Work accidents same number , while company caraccidents decreased

■Deliberated in a Labor-Management Committee onWorking Style Reform through cooperation betweenlabor and management about measures to reducelong working hours and initiatives to eradicate powerharassment

■Increased awareness of the Healthy Sharp 23initiative and promoted specific measures

△


Social Activities ： Promoting Occupational Safety and Health

Promoting Occupational Safety and Health*Self evaluation:◎ Achieved more than targeted / ○ Achieved as targeted / △ Achieved to some extent

Organization Promoting Safety and Health

Aiming for a Secure, Safe, and Healthy Workplace

◂ 53 ▸

Sharp also carries out activities led by Sharp Green Club (SGC), a volunteer organization composed of Sharp and its labor

union. This group pursues environmental conservation activities at domestic business sites and sales and service bases in

Japan. The group‘s activities include the following: Sharp Forest projects conducted in 8 areas to protect biodiversity

and regenerate satoyama (areas that lie between the foot of a mountain and arable land);efforts to protect wetlands in

accordance with the Ramsar Convention ; and other activity planning in 4 areas. In fiscal 2015, a total of 1,096 such

activities were conducted with the participation of about 21,000 people. Looking ahead, Sharp will continue to contribute

to local areas by conducting community-based activities.

Since fiscal 2012, Sharp Corporation and Sharp Tokusen Industry Co., a Sharp special subsidiary ※4, have been working

together to enhance career education activities conducted at special-needs schools and similar organizations for

physically or mentally challenged students. The aim of these activities is to foster a career-minded perspective in

students and motivate them to work and achieve greater self-sufficiency. By March 2016, around 2,300 pupils had

attended classes at around 110 schools.

Safety, Hygiene, and Health Committee consisting of labor and management representatives at each business location holds

a monthly meeting to report and discuss safety, hygiene, and health activities and decide on improvement measures. And

Sharp is promoting the introduction of an occupational safety and health management system in an effort to further address

the potential risk of accidents in the workplace and to firmly set in motion proactive safety activities that prevent or reduce

risks. In order to help employees avoid mental illnesses or deal with them at an early stage and to support employees on

medical leave in making a smooth return to work, Sharp in Japan has a counseling system with medical specialists or

industrial counselors at main offices and plants.

Sharp's Business Philosophy says that it will contribute to the culture, benefit, and welfare of people throughout the world.

To this end, Sharp teamed up "Healthy Sharp 23." to begin comprehensive support for the health of Sharp employees and

their families. This program incorporates numerous activities aimed at achieving certain health targets by the end of March

2023.The result of these continuing measures is that the Sharp Group's ※1 industrial accident rate (frequency rate of

industrial accidents ※2leading to lost work time) in Japan in 2015 was 0.25. This rate is consistently below the ※3national

average for the manufacturing industry.

※1 Sharp Group in Japan: Sharp Corporation, SEMC, SEO, SESJ, SBS, SEK, SMS, STC, iDeep Solutions ※2 Indicator that represents the incidence of industrial accidents per million work hours (one day or more of suspended operations)※3 Averages for all industries and the manufacturing industry are based on a survey by the Japanese Ministry of Health, Labor, and Welfare.


evaluation※

■Holding dialogues with local communities■Participating in local social contribution

activities as the Sharp Group

■Systems established and promoted for holdingdialogue with local communities .

■Number of social contribution activitiesmaintained and promoted new activities

○

Priority Objectives for Fiscal 2016■Penetrate ,establish and provide feedback at domestic

production bases■Establish systems at sales sites


Social Activities ： Promoting Occupational Safety and Health Social Contribution Activities

Promoting Social Contribution Activities*Self evaluation:◎ Achieved more than targeted / ○ Achieved as targeted / △ Achieved to some extent

Basic Concept of Social Contribution Activities

※4 A subsidiary that has made special efforts supporting the employment of challenged people, as defined in Japan's Act onEmployment Promotion, etc. of Persons with Disabilities (e.g. improving facilities where the physically or mentallychallenged work).

◂ 54 ▸

Sharp works with local governments and non-profit organizations to provide opportunities on its premises for the

sale of products, such as bread and cookies, made at vocational training centers for the disabled located in

communities near Sharp facilities. In fiscal 2015, such sales took place at 14 locations throughout Japan, with the

participation of a total of 371 facilities.

Based on the three points listed below, Sharp works to create an environment where each and every employee can actively participate in community-based social action programs and volunteer activities:1. Establishing volunteer leave and other company systems2. Establishing the Sharp Green Club (SGC) volunteer organization as a joint effort between labor and management3. Providing employees opportunities to participate in volunteer activities in coordination with NPOs and other

third-party organizations

Sharp think social contribution activities to repay gratitude to local communities are very important since they

pass on founder's gratitude and his DNA of creativity. The bonds that we are able to establish by working with

local residents and holding dialogues to address various social issues are an irreplaceable asset when we carry out

our business activities.

In continuing these activities, Sharp was awarded by local government at several sites in 2015.

・Sharp Corporation Mie Plant/Kameyama Plant

Ministry of the Environment ：Excellence Prize, 19h Environmental Communication Awards

Mie Prefecture ： Mie Environmental Awards

・Sharp Corporation Mie Plant

Ministry of Land, Infrastructure, Transport and Tourism：Incentive award 30ｔｈ Handmade Hometown Prizes

・Sharp Corporation Kameyama Plant

The National Land Afforestation Promotion Organization ： National forest development festival chairman's

Award

・Sharp Corporation Hirano office

Osaka city : For Fiscal Year 2015: Award for Person with Distinguished Service in Beautification of Roads,

Rivers and Parks & Group Award for Distinguished Service in Collecting Recyclable Materials


Providing Sales Opportunities for Vocational Training Center Products

Social Activities ： Social Contribution Activities

Social Welfare Activities and Employee Volunteer Activities

Community-Based Activities

Communicating with Local Communities

:Sharp Corporation

:1 Takumi-cho, Sakai-ku, Sakai City, Osaka

590-8522, Japan Tel. +81-72-282-1221

:Tai Jeng Wu, President & Chief Executive Officer

:September 15, 1912

:5 billion yen (as of August 12, 2016)

:Consolidated: 43,064

・ Japan: 19,522(Sharp Corporation 13,897

/ other Consolidated 5,625)

・ Overseas: 23,542 (Consolidated)

(as of September 30, 2016)

:Mainly manufacturing and sales of telecommunications

equipment, electric and electronic application

equipment, and electronic components.

Sharp’s business activities comprise “electric and electronic application equipment” (i.e., end-user consumer

products and information electronics) and “Electronic Components” (i.e., key components of electronic products).

By undertaking the development both of key devices based on proprietary technologies and of products in which

these devices and technologies are applied,

Sharp aims to inspire and impress its customers. The company is working actively to develop its business by

pioneering new markets and by bringing forth never-before-seen, uniquely featured products and devices.

Corporate Profile

◂ 55 ▸

Inquiry about Sustainability Report ：

Sharp Corporation

E-mail: [email protected]

Procurement Development DivisionCorporate Procurement UnitCorporate Strategic Planning and Control Group

TEL +81-6-6796-1528FAX+81-6-6796-1145

Internal Control Planning DivisionFinance and Administration OfficeCorporate Strategic Planning and Control Group

TEL +81-72-282-0401FAX +81-72-282-0448

Environmental Promotion UnitQuality and Environmental Promotion Group

TEL +81-743-65-2485FAX +81-743-65-2466


◇ Corporate Name

◇ Head Office

◇ Representative

◇ Founded

◇ Capital Stock

◇ Employees

◇ Operations

mailto:[email protected]

Published January 2017

contents · contents p.1 business philosophy and business creed. p.2 top message. p.3 ～csr...

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